Shish Industries: consolidated PAT turns to ₹1.54 Cr loss as costs outpace revenue

Shish Industries' consolidated revenue rose 7.2% YoY to ₹35.49 Cr (from ₹33.12 Cr) but fell 7.0% QoQ (from ₹38.15 Cr), and the group swung to a consolidated net loss of ₹1.54 Cr for Q1 FY27, against a ₹1.76 Cr profit in Q4 FY26 and a ₹2.78 Cr profit in the year-ago quarter as reported in this filing's own comparative column. Standalone told the same story: PAT fell to a ₹0.81 Cr loss from a ₹2.93 Cr profit a year earlier, on modest 4.9% standalone revenue growth to ₹33.94 Cr. Cost of materials consumed rose 39.3% YoY to ₹27.94 Cr against just 7.2% revenue growth — the single largest drag on the quarter. Depreciation nearly doubled YoY (₹2.14 Cr vs ₹1.24 Cr, +72%) and rose a further 33% sequentially, reflecting new capacity coming onto the books, while finance costs held roughly flat. Together these pushed operating margin to roughly -6.3% for the quarter, deeper into negative territory from an already-weak -0.27% in Q4 FY26, and net profit margin fell to -4.3% from +4.3% (QoQ) and +7.19% (YoY, per our records). MarketsMojo's Q4 FY26 review had explicitly flagged Q1 FY27 as the quarter to watch, warning that continued negative or low-single-digit operating margins would "confirm structural issues," and modelling a bear-case fair value of ₹8-10 on normalised 9-10% margins if that played out. This quarter's margin moved further negative rather than stabilising, so the print reads as a miss against that framework. Management has issued no formal guidance on record and no press release accompanied this filing, so there is no company commentary to reconcile against the numbers. Separately, the company's same-day monitoring report on its February 2026 preferential-issue proceeds (₹72.34 Cr raised) shows no deviation in fund utilisation this quarter, with ₹1.91 Cr deployed to capex and ₹23.31 Cr to working capital — relevant given the rising depreciation is tied to that capacity build-out. With two straight quarters of negative operating margin now on record, the next print needs to show whether the new capacity translates into enough incremental volume to restore profitability, or whether raw-material cost pressure persists.