Prakash Industries Q1FY27: PAT falls 22% YoY to ₹71 Cr on new tax regime, not ops

Prakash Industries reported standalone revenue of ₹1,032 Cr for Q1 FY27, flat YoY (-0.5% vs ₹1,037 Cr) and up 12.2% sequentially from a seasonally soft Q4 FY26 (₹920 Cr). Net profit fell sharply to ₹71.3 Cr, down 22% YoY (₹91.4 Cr) and 24% QoQ (₹93.3 Cr), with EPS at ₹3.98 against ₹5.10 a year ago and ₹5.21 last quarter. Reported net margin compressed to 6.9% from 8.8% YoY and 10.1% QoQ. The headline profit drop is not an operating story. Pre-tax profit actually rose to ₹92.7 Cr from ₹91.4 Cr YoY (+1.5%), and per the company's press release EBITDA grew to ₹154 Cr from ₹144 Cr (+6.9% YoY), with EBITDA margin expanding to 14.9% from 13.9%. The entire swing sits in the tax line: effective tax rate jumped to ~23% this quarter from near-zero a year ago, after the company opted into the new tax regime under the Income Tax Act, 2025 effective 1 April 2026, which took away its Section 80-IA exemption. The prior-year and immediately preceding quarter both carried MAT credit entitlements that fully offset current tax, masking the now-higher structural tax rate. Neither the database nor a web search turned up formal management guidance or street consensus estimates for this quarter — Prakash Industries is not widely covered by brokerage previews, so vsGuidance and vsStreet are both unknown. On the operating side, the company extracted 3.3 lakh MT of coal from its Bhaskarpara mine during the quarter and is targeting 1.2 million tonnes for FY27, following an Environmental Clearance (granted 12 June 2026) to raise mine capacity from 1.0 to 1.2 MTPA. Separately, the auditor's review report notes a ₹165 lakh deferred tax liability adjusted directly against Securities Premium under a court order rather than run through the P&L — a non-recurring accounting treatment worth tracking for consistency in future quarters. Going forward, the ~23% effective tax rate is now structural (not one-off) since the 80-IA exemption is gone for good under the new regime, so future quarters should be judged on PBT/EBITDA trends rather than the YoY PAT comparison, which will keep looking weak purely on the tax base effect.