Consolidated PAT +22% YoY on subsidiary boost, but margins compress 3rd straight quarter

CMR Green Technologies' first quarterly print as a listed company shows consolidated revenue of Rs 3,122.73 Cr, up 64.9% YoY and 32.1% QoQ - comfortably above the Rs 2,100-2,250 Cr band flagged in our pre-result preview. Consolidated profit after tax came in at Rs 68.18 Cr, up 21.9% YoY and 3.3% QoQ. Profit growth trailing revenue growth by roughly 3x is the real story, not a clean beat. Against the preview's three-part test - revenue momentum, margin resilience, CapEx discipline - revenue momentum clearly passed, but margin resilience did not: OPM of ~4.5% sits well below the 18-20% 'watch' range flagged pre-result (that range looks inconsistent with the company's own FY26 EBITDA margin of ~5.2% per public FY26 disclosures, so treat it as a soft comparison rather than a hard miss). CapEx discipline is not disclosed in this results filing. There is no formal analyst consensus on record for this stock (confirmed via search, consistent with the preview's 'zero coverage' read), so vs-street is unknown; no management press release was available in our context for this quarter, so this read rests solely on the filed financials and auditor notes.

The margin compression is broad and now a three-quarter trend at the consolidated level: OPM (EBITDA/revenue) has fallen from 5.81% in Q1 FY26 to 5.58% in Q4 FY26 to 4.53% this quarter, while NPM slid from 2.95% to 2.18% over the same span. The driver sits on the cost-of-materials line - raw materials consumed rose to 90.8% of revenue from 84.9% a year ago and 87.1% last quarter - consistent with the company's recycled-metal trading model, but a reversal of the 'further EBITDA per ton improvement via new alloys and economies of scale' management promised on the July 2 concall. That specific guidance looks unmet this quarter.

The stock went into the print at ₹221.27, down 1% over the past month of trading.

Basis matters here: standalone (parent-only) PAT actually fell 4.3% YoY and 12.5% QoQ to Rs 35.25 Cr even as standalone revenue grew 36.8% YoY - parent-level profitability genuinely weakened. All of the consolidated PAT growth came from the subsidiary/JV layer: five subsidiaries contributed Rs 32.31 Cr of PAT on Rs 2,445 Cr of revenue (before consolidation adjustments, per the auditor's note), plus a foreign subsidiary (Rs 202.64 Cr revenue, Rs 0.61 Cr PAT) and a Rs 1.49 Cr JV profit share. Minority interest's claim on profit also jumped to Rs 6.81 Cr from Rs 1.67 Cr QoQ, which is why basic EPS fell to Rs 2.80 from Rs 2.94 QoQ despite total consolidated PAT rising - a divergence readers should not mistake for an error. Corporately, this was a housekeeping-heavy quarter: the board approved re-appointment of the MD, two whole-time directors and three independent directors, appointed Ankur Singh as an Additional/Executive Director, and took note of Nominee Director Peter Francis Amour's resignation - routine post-IPO governance, not linked to the operating numbers. The company also recognized a Rs 2.19 Cr ESOP charge (72,500 options granted) under its new employee stock plan, a modest but recurring drag embedded in employee costs. The four pre-result watch items (subsidiary-expansion board approval, FY26 audited results, trading-window closure, CIN change) were all administrative and resolved before this filing - the FY26 audited numbers now sit confirmed in the 'Year Ended' column (Rs 8,640.19 Cr revenue, Rs 228.38 Cr PAT) and did not affect this print.