VMS TMT Q1 FY27 Results (NSE: VMSTMT)
Signal: Margin pressure
The read
The key trajectory is a margin-led earnings slowdown: revenue grew 16.7% YoY to ₹24,775.74 lakh, but calculated gross margin compressed 498bps and EBITDA margin fell to 4.9% from approximately 6.6% YoY, driving PAT down 47.9% to ₹446.75 lakh; the QoQ recovery was helped by finance costs falling 36.7%, not by a clear operating inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹247.76 Cr | +16.7% | +2.8% |
| EBIT | ₹9.64 Cr | N/A | |
| Net profit | ₹4.47 Cr | -47.9% | |
| EPS | ₹0.9 | -63.7% | |
| EBIT margin | 4.9% |
P&L walk
Revenue increased to ₹24,775.74 lakh, +16.7% YoY and +2.8% QoQ, but calculated gross margin compressed to 23.2% from 28.2% YoY; EBITDA margin was 4.9% versus approximately 6.6% YoY, while PAT fell to ₹446.75 lakh, -47.9% YoY, despite finance costs declining 40.9%.
Key positives
- Revenue increased to ₹24,775.74 lakh, +16.7% YoY and +2.8% QoQ, sustaining top-line growth despite weaker profitability.
- Finance costs declined 40.9% YoY to ₹396.22 lakh, while interest service coverage improved to 2.87x from 2.64x YoY and 2.15x QoQ.
- Debt-equity improved to 0.91x from 3.78x YoY, with net worth increasing to ₹23,251.95 lakh from ₹8,177.47 lakh.
Key concerns
- Calculated gross margin compressed 498bps YoY to 23.2%, and the filing does not disclose the operating reason for the deterioration.
- EBITDA margin declined to 4.9% from approximately 6.6% YoY even as revenue grew 16.7%, showing no qualifying operating-leverage signal.
- PAT fell 47.9% YoY to ₹446.75 lakh, while the 16.7% revenue increase did not translate into earnings growth.
Research and educational content only. Not investment advice.