Volt.Transform. Q1 FY27 Results (NSE: VOLTAMP)
Signal: Margin pressure
The read
Revenue grew 28% YoY but margin compression from higher raw material costs limited PAT growth to 14.7%, while the company announced ₹90 Cr capex for a new dry-type transformer facility, indicating confidence in sustained demand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹543.78 Cr | 28.4% | -11.9% |
| EBIT | ₹118.35 Cr | 12.8% | |
| Net profit | ₹91.22 Cr | 14.7% | |
| EPS | ₹90.17 | 14.7% | |
| EBIT margin | 22.4% |
P&L walk
Revenue grew 28.4% YoY but gross margin compressed 299bps to 24.6% on higher raw material costs; EBITDA margin fell 317bps to 22.4%; net profit growth of 14.7% was supported by higher other income (35.3% of PBT).
Key positives
- Revenue grew 28.4% YoY to ₹543.78 Cr, driven by strong demand.
- EBITDA margin recovered sharply QoQ (+1087bps) to 22.4%, showing operating rebound from Q4 lows.
- Board approved ₹90 Cr capex for new dry-type transformer facility (2300 MVA capacity) to meet demand over 5-6 years.
- Company remains debt-free (D/E 0) with all capex funded internally.
- EPS of ₹90.17 +14.7% YoY, no dilution.
Key concerns
- Gross margin compressed 299bps YoY to 24.6% due to raw material cost outpacing revenue growth.
- Net profit growth (14.7% YoY) lagged revenue growth due to margin erosion.
- Other income at 35.3% of PBT is high; operating earnings quality diluted by non-operating income.
- Finance cost rose 43% YoY, albeit from a low base.
Earnings quality: includes non-operating other income
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