XPRO India Q1 FY26 Results (NSE: XPROINDIA)
Signal: Margin expansion
The read
Q1FY27 shows a sharp YoY recovery in revenue (+20.4%) and EBITDA margin (11.4% vs 0.6%), but the improvement is from a severely depressed base (Q1FY26 had an OPM loss of -2% and a PAT loss). The trajectory is misleading: FY26 full-year revenue fell 15.2% YoY and PAT was only ₹19.23 Cr on ₹505 Cr revenue. The core India manufacturing business posted a healthy PBIT of ₹16.23 Cr, but the UAE subsidiary continues to bleed. Other income (₹3.99 Cr) and a large unrealised forex gain (₹0.76 Cr gain vs ₹16.80 Cr loss last year) inflated the bottom line — without these, PAT would be much lower. The dividend payout exhausted ₹4.69 Cr. Overall, this is a single-quarter bounce, not a sustained turnaround.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17,442.08 Cr | 20.4% | 29.8% |
| EBIT | ₹14,740 Cr | 970% | |
| Net profit | ₹79,430 Cr | 244.9% | |
| EPS | ₹338 | 37.4% | |
| EBIT margin | 11.4% |
P&L walk
Revenue recovered to ₹174.42 Cr (+20.4% YoY) driven by India segment growth, but EBITDA margin at 11.4% is still thin despite large YoY expansion from a near-zero base; depreciation jumped 70.7% YoY reflecting fresh capex, and finance cost surged 88.4% YoY. PAT of ₹7.94 Cr benefited from ₹3.99 Cr other income (34.5% of PBT) and a unrealised forex gain vs large loss last year. Outside India segment remained loss-making (₹0.38 Cr loss).
Key positives
- Revenue recovered to ₹174.42 Cr (+20.4% YoY), highest in 5 quarters, driven by India segment growth.
- EBITDA margin expanded to 11.4% (+1080bps YoY) from the near-zero base of 0.6%.
- India segment PBIT surged 136.9% YoY to ₹16.23 Cr, showing operational recovery.
- UAE subsidiary loss narrowed to ₹0.38 Cr from ₹9.39 Cr loss a year ago.
- Unrealised forex gain of ₹0.76 Cr vs heavy loss of ₹16.80 Cr in Q1FY25 — tailwind reversed.
Key concerns
- Consolidated PAT of ₹7.94 Cr includes 34.5% from other income — core operating PAT is weak.
- Finance cost jumped 88.4% YoY to ₹3.18 Cr, indicating higher debt burden.
- Depreciation surged 70.7% YoY to ₹5.09 Cr, outpacing revenue growth — margin pressure from capex.
- UAE subsidiary still loss-making, though narrower; segment assets of ₹485 Cr generate zero revenue.
- FY26 full-year revenue declined 15.2% YoY and PAT was only ₹19.23 Cr on ₹505 Cr turnover — trend is not yet reversed.
- EPS of ₹3.38 is still 38.8% below the prior quarter (Q4FY26) of ₹5.53.
Research and educational content only. Not investment advice.