Unitech Q1 FY27 Results (NSE: UNITECH)
Signal: Loss narrowed
The read
The quarter shows a gross-margin inflection to 32.8%, up 3,842bps YoY as cost of construction fell 20.2%, but this improvement is overwhelmed by finance costs of ₹41,139.09 lakh, leaving a ₹38,819.15 lakh PAT loss; with overdue public deposits of ₹52,435.23 lakh, total loans of ₹112,254.09 lakh and no approved resolution framework, the earnings trajectory remains balance-sheet constrained rather than execution-led.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹65.8 Cr | +25.4% | -36.4% |
| Net profit | ₹-388.19 Cr | +4.9% | |
| EPS | ₹-1.48 | +5.1% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue increased to ₹6,580.07 lakh, +25.4% YoY but -36.4% QoQ, while the gross margin expanded to 32.8% from 9.0% a year earlier as cost of construction fell 20.2% YoY; however, finance costs rose 1.4% YoY to ₹41,139.09 lakh and kept PAT at a ₹38,819.15 lakh loss.
Key positives
- Revenue from operations rose 25.4% YoY to ₹6,580.07 lakh, although it declined 36.4% QoQ from ₹10,349.73 lakh.
- Gross margin expanded 3,842bps YoY to 32.8% as cost of construction fell 20.2% YoY to ₹4,422.92 lakh.
- Employee and other expenses of ₹902.97 lakh grew 10.1% YoY, slower than revenue growth of 25.4%, providing some cost containment.
- The PAT loss narrowed 4.9% YoY to ₹38,819.15 lakh and EPS improved 5.1% YoY to ₹-1.48.
Key concerns
- Finance costs of ₹41,139.09 lakh were 625.2% of revenue and rose 28.4% QoQ, overwhelming the reported gross-margin improvement.
- The company remains loss-making, with a ₹38,819.15 lakh quarterly loss despite revenue growth of 25.4% YoY.
- The filing states that the company faces challenges meeting current liabilities, bank loans and public deposits, and that continuation as a going concern depends on future financing, cash flows and the Supreme Court's decision on the resolution framework.
- The Supreme Court has stayed the sale of unsold inventory, while the proposed one-time settlement with secured creditors remains subject to further directions.
Research and educational content only. Not investment advice.