Garuda Construction: PAT jumps 48% YoY, revenue up 40% as margins expand in Q1 FY27

Garuda Construction and Engineering's consolidated Q1 FY27 (quarter ended 30 June 2026, unaudited) results show revenue from operations of ₹175.38 Cr, up 40.1% YoY from ₹125.16 Cr and up 17.7% QoQ from ₹149.05 Cr. Consolidated PAT attributable to owners came in at ₹41.54 Cr, up 48.4% YoY (₹28.00 Cr) and 20.7% QoQ (₹34.42 Cr), with basic EPS of ₹4.47 versus ₹3.01 a year ago. There are no exceptional items in either the current or year-ago quarter, so the growth is entirely operational — no raw-vs-adjusted split is needed. Margins expanded on a YoY basis: net profit margin rose to roughly 23.7% from 22.1%, and operating margin widened to around 32.1% from 29.1%. The bridge is a materials-cost efficiency: cost of materials consumed fell to 8.6% of revenue from 18.3% a year ago, more than offsetting a rise in construction/subcontracting expense to 56.3% of revenue from 48.0%. Sequentially margins were broadly flat (NPM ~23.15%→23.66%, OPM ~32.19%→32.11%), so the QoQ profit uptick tracked the QoQ revenue uptick rather than reflecting fresh margin gains — a sequential read that should not be read as the headline story. Standalone and consolidated numbers are near-identical this quarter — the three subsidiaries (PKH Projects LLP, PKH Ayodhya Private Limited, UP World Trade Centre Private Limited) contributed nil revenue and a combined net loss of ₹2.16 lakh, reviewed by other auditors. No formal Street consensus estimate specific to Q1 FY27 was found; the closest available read (Univest) frames broader FY27 PAT-growth expectations at roughly 15-20%, a full-year figure this quarter's 48% YoY PAT growth runs well ahead of, though that is not an apples-to-apples quarterly comparison. Management has no formal guidance on record for this quarter, and no press release accompanying this filing was available to cross-check its own framing of the print. Separately, the board added two independent directors on 9 June 2026 and there was an auditor appointment/resignation update on 30 May 2026, neither tied numerically to this result; PKH Ventures, a promoter-linked entity, pledged 65 lakh Garuda shares on 3 August 2026 — a governance-adjacent event outside the P&L but worth flagging alongside the print.