MIDHANI Q1 FY27: Consol PAT +27% YoY to ₹16.5 Cr, OPM Slips to ~15% from ~20%

MIDHANI's consolidated Q1 FY27 PAT rose 27.0% YoY to ₹16.47 Cr (standalone ₹16.31 Cr, +27.4% YoY per the company's own press release) on consolidated revenue of ₹239.49 Cr, up 40.5% YoY — both metrics running ahead of management's guided pace of 15% revenue and 20% PAT growth over the next two years. Even so, the quarter fell short of the pre-result Street-implied revenue range of ₹300-350 Cr, landing roughly 20-30% below the low end despite the strong YoY jump; EBITDA of ₹46.60 Cr (+12.9% YoY) translated to a margin of ~19.5% on a press-release basis, at the low end of the ~19-21% range flagged pre-result. No formal third-party Street consensus specific to this quarter turned up in search, so the read here leans on our own pre-result preview and management's own guidance. The real story is margin, not growth. Operating margin (EBITDA less other income, over revenue from operations) compressed to ~15.3% from ~20.0% a year ago and ~21.0% last quarter, while net margin fell to 6.6% of total income from 7.3% YoY — well short of management's own 24-25% FY27 EBITDA margin target. The squeeze sits on the cost side: total expenses grew 42.2% YoY to ₹225.56 Cr, outpacing 40.5% revenue growth, with employee costs up 15.8% YoY and other expenses up 13.9% YoY as the key drivers, alongside a swing in the inventory-change line (₹-20.87 Cr this quarter vs ₹-70.80 Cr a year ago). QoQ, both revenue (-56.7%) and PAT (-78.9%) fell sharply from Q4 FY26 (₹552.75 Cr revenue, ₹77.90 Cr PAT), but Q4 is a seasonally loaded quarter for this PSU (year-end execution and billing), so the sequential drop reads as seasonal, not deterioration. Order book stood at ₹2,329 Cr as of July 1, 2026, roughly in line with the ₹2,290 Cr flagged in our pre-result preview and tracking management's stated aim of ~₹1,500 Cr in fresh FY26-27 bookings. No exceptional items appear in either the current or year-ago quarter, so the growth print is clean with no one-off distortion, and the consolidated result includes only a ₹0.15 Cr equity-method profit share from the pre-operational Utkarsha Aluminium JV, keeping standalone and consolidated numbers within 1% of each other. Going into Q2, the margin trajectory against the 24-25% FY27 target — not the topline growth rate, which is already running ahead of guidance — is the metric to watch.