Vaibhav Global Q1 FY27 Results (NSE: VAIBHAVGBL)
Signal: Margin expansion
The read
The operating trajectory improved for a fourth consecutive YoY margin-expansion quarter, with consolidated EBITDA margin rising 190bps to 11.1% and PAT up 49.8%; the key quality caveat is that ₹2,559.15 lakh of tariff refunds was recognized as other operating revenue, while the US provided the core underlying growth at +20.9% revenue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹917.07 Cr | +12.7% | -1.9% |
| EBIT | ₹75.42 Cr | +30.5% | |
| Net profit | ₹56.38 Cr | +49.8% | |
| EPS | ₹3.37 | +49.1% | |
| EBIT margin | 11.1% |
P&L walk
Revenue increased to ₹91,707.34 lakh, +12.7% YoY, while EBITDA rose to approximately ₹10,205 lakh and margin expanded to 11.1%; the improvement reflected stronger profit conversion alongside lower employee-cost intensity, but included ₹2,559.15 lakh of tariff refunds recorded as other operating revenue.
Segments
The US drove the group, with revenue of ₹59,800.88 lakh, +20.9% YoY, and segment result of ₹5,831.98 lakh, +72.8%; the UK swung from ₹978.27 lakh profit to a ₹47.48 lakh loss and Europe ex-UK remained loss-making at ₹288.50 lakh.
Key positives
- Consolidated revenue reached ₹91,707.34 lakh, +12.7% YoY, with the US segment growing 20.9% to ₹59,800.88 lakh.
- EBITDA grew approximately 36.8% YoY versus revenue growth of 12.7%, a +24.1pp gap, while employee cost grew only 2.6% and depreciation 5.3%; EBITDA margin expanded 190bps to 11.1%.
- Gross margin expanded approximately 410bps YoY to 70.1%, although the filing did not disclose the driver.
- Basic EPS rose 49.1% YoY to ₹3.37, broadly tracking 49.8% PAT growth.
- The company declared an interim dividend of ₹1.50 per share.
Key concerns
- UK segment result deteriorated from a ₹978.27 lakh profit in Q1FY26 to a ₹47.48 lakh loss, while Europe ex-UK reported a ₹288.50 lakh loss.
- Finance costs rose 29.7% YoY to ₹454.29 lakh, faster than revenue growth.
- Content and broadcasting expenses rose 19.1% YoY to ₹19,654.98 lakh, faster than consolidated revenue growth.
- Standalone PAT was only ₹1,328.03 lakh, versus consolidated PAT of ₹5,638.26 lakh, highlighting that earnings are primarily generated through subsidiaries.
Research and educational content only. Not investment advice.