Websol Energy Q1 FY27 Results (NSE: WEBELSOLAR)
Signal: Margin pressure
The read
The key inflection is not growth but profitability: revenue remains 70.3% above last year at ₹372.60 crore, yet EBITDA margin has contracted for a fifth consecutive reported comparison to 34.9% from 41% in Q3FY26 and 36% in Q4FY26, while raw-material cost rose to 52.7% of revenue from 37.2% YoY; the scale-up is therefore not yet translating proportionately into profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹372.6 Cr | 70.3% | -7.2% |
| EBIT | ₹108.14 Cr | 13.8% | |
| Net profit | ₹77.79 Cr | 15.8% | |
| EPS | ₹1.79 | -88.8% | |
| EBIT margin | 34.9% |
P&L walk
Consolidated revenue rose 70.3% YoY to ₹372.60 crore but fell 7.2% QoQ; gross margin compressed to 51.2% from 71.6% as raw-material cost rose to 52.7% of revenue, driving EBITDA margin down to 34.9% and limiting PAT growth to 15.8%.
Key positives
- Revenue reached ₹372.60 crore, up 70.3% YoY, maintaining the company’s high-growth trajectory despite a 7.2% QoQ decline.
- Employee plus other expenses of ₹65.28 crore grew 23.1% YoY, substantially slower than revenue growth and providing fixed-cost absorption support.
- Finance cost was contained at ₹4.17 crore, up only 1.9% YoY, and the outstanding IREDA term loan was fully repaid from internal accruals after quarter-end.
Key concerns
- Gross margin compressed approximately 2030bps YoY to 51.2% as raw-material cost rose to 52.7% of revenue from 37.2%; the filing does not disclose the cause or evidence of pass-through.
- EBITDA margin fell approximately 1340bps YoY to 34.9% and has contracted from 46% in Q3FY25 to 34.9% currently, showing that rapid revenue growth is being accompanied by sustained margin erosion.
- PAT growth of 15.8% YoY to ₹77.79 crore substantially lagged revenue growth of 70.3%, reflecting weak conversion of incremental sales into earnings.
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