Banswara Syntex turns profitable YoY in Q1 FY27; margins still trail FY27 guidance band
revenue +3.22% · margins expanding
₹315.83 Cr
+3.22% YoY
₹4.61 Cr
1.43%
+1.9pp YoY
₹1.35
Banswara Syntex swung to a consolidated net profit of ₹4.61 Cr in Q1 FY27 (standalone ₹4.41 Cr), reversing a ₹1.37 Cr consolidated loss in Q1 FY26, as revenue edged up 3.2% YoY to ₹315.83 Cr. Consolidated PAT runs about 4.6% ahead of standalone, the entire gap explained by the ₹0.93 Cr profit share from JV Tesca Textile & Seat Components booked at the consolidated PBT line — the two statements otherwise tell the same story. No analyst consensus for this quarter turned up in a search, so the print can't be graded against the Street; there is no formal quarterly guidance either, but management's FY27 outlook (₹1,450-1,500 Cr revenue, 10.5-11% medium-term EBITDA margin, both from the FY26 Q4 concall) gives a bar to track.
Q1 FY-2027 vs prior quarters
Margins improved YoY but stayed short of that band: operating margin recovered to roughly 7.0% of revenue from 5.8% a year ago, while net margin turned positive at 1.4% versus -0.4%. Sequentially, though, both metrics stepped down sharply from Q4 FY26 (revenue -13.6% QoQ to ₹365.65 Cr, consolidated PAT -59.9% QoQ from ₹11.49 Cr, OPM near 11.5%) — a seasonal Q4-to-Q1 pattern rather than fresh deterioration, and management's own commentary attributes part of the softness to labour availability issues at the start of the quarter, with raw-material cost pass-through also weighing on the margin line as flagged at the last call.
The stock went into the print at ₹127.52, down 4% over the past month of trading.
What the summary numbers don't show
EPS ₹1.35 consolidated / ₹1.29 standalone (basic, not annualised) vs ₹(0.40) a year ago
Banswara Syntex provided a revenue guidance of INR1,450 to INR1,500 crores for FY27, anticipating growth led by the Fabric and Garment divisions. Management expects EBITDA margins to remain between 10.5% to 11% over the medium-term, though near-term margins might be impacted by raw material cost pass-through. Strategic
At ₹315.83 Cr for the quarter, the company is running well behind the pace needed to hit its ₹1,450-1,500 Cr FY27 target, though management has guided to progressively stronger growth through H2 FY27 rather than a linear build. On the same board day the company approved acquiring ~1.68% equity (₹8.28 Cr) in CGE II Hybrid Energy for an 8.70 MW captive renewable power supply to its Thikariya and Dahod Road plants — a lever aimed at Power & Fuel costs, which at ₹35.42 Cr consolidated were the second-largest expense line this quarter — alongside routine AGM business (dividend record date, director re-appointments) and a new Company Secretary appointment effective 3 August 2026.
W1
FY27 revenue guidance of ₹1,450-1,500 Cr requires roughly ₹1,134-1,184 Cr over the remaining three quarters against Q1's ₹315.83 Cr — watch for the H2 acceleration management has flagged
W2
OPM trajectory toward the 10.5-11% medium-term band from ~7.0% now, as RM cost pass-through eases and the CGE II renewable power tie-up (targeted completion by 15 Aug 2026) starts offsetting Power & Fuel costs (₹35.42 Cr this quarter)
W3
Labour availability, cited by management as a Q1 FY27 headwind — watch for resolution commentary on the Aug 3, 2026 earnings call
No exceptional items this quarter (Q4 FY26 had carried a ₹8.91 Cr exceptional loss); consolidated PBT includes ₹0.93 Cr JV (Tesca Textile & Seat Components) profit share; consolidated subsidiary Banswara Brands posted a ₹0.72 Cr loss on ₹0.36 Cr revenue, reviewed by another auditor.
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