Schneider Electric Infra Q1FY27: standalone PAT falls 70% YoY on raw material cost surge

Schneider Electric Infrastructure's standalone PAT fell 69.8% YoY to ₹12.44 Cr (from ₹41.24 Cr in Q1 FY26) even as revenue from operations grew 4.8% YoY to ₹651.4 Cr — a clean YoY comparison since neither period carries exceptional items. Sequentially, revenue rose 10.5% QoQ but PAT fell 43.4% QoQ from ₹21.97 Cr, though that base was inflated by a ₹10.41 Cr one-off gratuity-provision reversal booked in Q4 FY26 (note 4) that doesn't recur here. EPS came in at ₹0.52 versus ₹1.72 a year ago and ₹0.92 last quarter.

The squeeze is concentrated in raw materials: cost of materials consumed rose 28.5% YoY to ₹457.3 Cr, taking it to 70.2% of revenue versus 57.2% a year ago — a roughly 13-point jump that alone explains most of the margin compression. Gross margin came in near 35.4%, below the ₹625-650 Cr revenue / 37-38% gross-margin range flagged in our pre-result preview. Finance costs added further pressure, up 40.7% YoY to ₹15.15 Cr, alongside a 14.8% YoY rise in employee costs to ₹99.5 Cr. Net profit margin compressed to 1.9% from 6.6% a year ago (3.7% last quarter); operating margin (EBIT/revenue) fell to roughly 5.2% from 11.2% YoY.

The stock went into the print at ₹1,368.05, up 2.8% over the past month of trading.

No exceptional items this quarter — Kolkata plant capex revised up to ₹291.2 Cr, signalling continued capacity investment

This directly confirms the caution management flagged after Q4 FY26 — a cautiously optimistic near-term outlook citing forex and raw-material headwinds, specifically copper and steel — while the offsetting tailwind they cited (government capex, central-utility outlay) has yet to show up in revenue growth, which remains modest at 4.8% YoY against a reported 50%+ YoY order-backlog build entering the quarter; this filing does not disclose fresh order-inflow or backlog figures to verify conversion. No formal analyst PAT consensus for this quarter was found in a web search, so the print cannot be graded against Street numbers directly; management has not issued a separate press release commentary in the materials reviewed. The same board meeting also cleared a revision of Kolkata plant capex to ₹291.2 Cr (announced July 3) and several leadership changes — Soumya Bagchi's elevation to Whole-Time Director and Nirupa Chander's appointment as a Non-Executive Director — none of which affect this quarter's P&L. A ₹12.16 Lakh CENVAT penalty from a lost tax appeal (July 30) is immaterial to the numbers.