Indosolar Q1 FY27 Results (NSE: WAAREEINDO)
Signal: Revenue declined
The read
Revenue collapsed 65% YoY, but gross margin exploded from 35% to 77% on raw material cost deflation and inventory liquidation; however, PAT fell 69% as the revenue decline overwhelmed margin gains. A ₹592 Lakh capital subsidy under U.P. Electronics Policy provided a one-time boost to other income. The company remains debt-free (D/E 0.01) with stable depreciation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹68.36 Cr | -64.89% | -17.73% |
| EBIT | ₹39.16 Cr | -28.11% | |
| Net profit | ₹36.62 Cr | -68.64% | |
| EPS | ₹8.8 | -68.65% | |
| EBIT margin | 57.29% |
P&L walk
Revenue decline of 65% was the dominant negative; gross margin surged 4205bps on raw material cost collapse, but fixed costs could not be absorbed, leading to a 69% PAT drop; other income from capital subsidy (₹592 Lakh) provided a temporary cushion.
Segments
Single segment: manufacturing and trading of solar photovoltaic modules; no diversification.
Key positives
- Gross margin expanded 4205 bps YoY to 77.4%, driven by sharp decline in raw material costs.
- EBITDA margin (excl. other income) expanded 3823 bps to 70.9%.
- Nearly debt-free with finance cost of only ₹7.68 Lakh.
Key concerns
- Revenue declined 65% YoY, indicating severe volume downturn.
- Net profit fell 69% despite margin expansion; sustainability of margins uncertain.
- Profitability boosted by one-time capital subsidy of ₹592 Lakh; without it, PAT would be lower.
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