Subros Q1 FY27: revenue +17.5% YoY but cost pressure caps consolidated PAT growth at 1.7%

Subros' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue rose 17.5% YoY to ₹1,032.11 Cr (from ₹878.25 Cr) but slipped 1.7% sequentially from ₹1,049.76 Cr in Q4 FY26. Consolidated PAT of ₹41.52 Cr grew just 1.7% YoY (₹40.83 Cr) and fell 15.8% QoQ (₹49.33 Cr), with basic EPS at ₹6.36 versus ₹6.26 a year ago and ₹7.56 last quarter. Standalone and consolidated figures track almost exactly (PAT ₹41.38 Cr, EPS ₹6.34 standalone), since the JV contributes only ₹0.14 Cr to consolidated profit. The gap between double-digit revenue growth and near-flat profit sits on the raw-material line: cost of materials consumed rose to 75.6% of revenue this quarter, up from 74.8% a year ago and 72.7% last quarter. That pushed EBITDA margin down to 7.83% from 9.34% YoY and 8.80% QoQ, and net margin to 4.00% from 4.62% YoY and 4.66% QoQ. Neither the current nor year-ago quarter carries an exceptional item, so this is a like-for-like margin compression, not a one-off distortion. Consensus estimates going into the print (TradingView/Univest-aggregated) had pegged revenue near ₹1,131 Cr and EPS near ₹6.80; the actual ₹1,032 Cr and ₹6.36 both came in below those marks — a street miss on both lines. Management issues no formal guidance in this filing and none is on record from prior calls, so there is no company-stated bar to judge against. Separately, the Board used this meeting to approve a Technical Assistance Agreement with DENSO Corporation and Toyota Industries Corporation to localize electric-compressor manufacturing for EVs/hybrids at the Karsanpura, Gujarat plant — a capability build management frames as contributing to future revenue, with no P&L impact this quarter. The quarter sets up a margin watch into Q2 FY27: whether the materials-cost ratio eases back toward the 73-75% band seen over the trailing year will decide if the 17.5% YoY topline growth starts converting into proportionate profit growth, or if cost/mix pressure persists.