Prostarm Q1FY27: PAT +151% YoY to ₹4.58 Cr, margins miss FY27 guidance

Prostarm Info Systems' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue came in at ₹76.05 Cr, up 38.5% year-on-year from ₹54.91 Cr in Q1 FY26, while consolidated PAT more than doubled to ₹4.58 Cr from ₹1.83 Cr — a 150.5% YoY jump, aided by a soft year-ago base. Sequentially, both lines pulled back sharply (revenue -27.2% QoQ, PAT -42.4% QoQ) from Q4 FY26's ₹104.45 Cr/₹7.95 Cr print, which had been boosted by deferred March-quarter order execution; the Q1 moderation looks like a reversion after that catch-up rather than a fresh slowdown. Margins expanded YoY but compressed QoQ: OPM was 8.53% versus 7.10% a year ago and 10.48% last quarter, while NPM rose to 5.83% from 3.28% YoY but eased from 7.45% in Q4. Both remain well below the 12-13% EBITDA margin and 8.5-9.5% PAT margin range management guided for FY27 on the May 2026 call, even as the quarter's 38.5% YoY revenue growth already runs ahead of the "minimum 25%" full-year revenue guidance. No street/analyst consensus for this quarter could be located — Prostarm has limited formal sell-side coverage as a recently listed small-cap — so the print is assessed only against management's own guidance, which it beat on revenue pace but missed on margin trajectory. Standalone PAT of ₹5.01 Cr ran about 9% ahead of the consolidated ₹4.58 Cr; the gap traces to a combined ₹0.43 Cr net loss at two BESS subsidiaries (Prostarm Energy Systems and Prostarm Karnataka Bess) this quarter, not a materially different operating story. Alongside results, the board raised ₹43.27 Cr via 29.44 lakh fully convertible warrants at ₹147 each to non-promoter investors — proceeds likely feed the Jhajjar and Gujarat capacity expansion flagged in the FY27 guidance — appointed Valawat & Associates as statutory auditor, and amended the MOA to formally add IT infrastructure, data-center and BESS-EPC services to its object clause, consistent with management's stated plan to hive off BESS developer projects and focus on EPC execution. Separately, a Karnataka Fire Department UPS order was cancelled in July at the bid stage (no contract had been signed), a modest negative against the ₹1,202 Cr order book cited as the base for FY27 growth. No management press release with quarter commentary was available to cross-check against these figures. Going into Q2 FY27, the read-through is a company still growing fast off a small base but yet to prove out the EBITDA/PAT margin structure management promised for the full year — the next 1-2 quarters need to show OPM and NPM trending back toward guided levels for the FY27 targets to stay credible.