3i Infotech Q1: consol PAT slips 14% YoY to ₹6.5 Cr as other income fades; revenue +4%
PAT -13.64% YoY · revenue +4.33% · margins compressing
₹177.94 Cr
+4.33% YoY
₹6.52 Cr
-13.64% YoY
3.54%
-0.4pp YoY
₹0.31
3i Infotech's Q1 FY27 (consolidated) is a modest-topline, softer-bottom-line print: revenue from operations rose 4.3% YoY to ₹177.94 Cr (up 1.2% sequentially), but net profit fell 13.6% YoY to ₹6.52 Cr and EPS eased to ₹0.31 from ₹0.45 a year ago. Net margin slipped to 3.66% from 3.93% a year earlier. The headline profit decline understates the operating swing: pre-tax profit collapsed ~52% YoY to ₹5.86 Cr, and the PAT drop was only cushioned by a ₹0.66 Cr tax credit this quarter versus a ₹4.55 Cr tax charge a year ago.
Q1 FY-2027 vs prior quarters
The swing is almost entirely non-operating. Core segment gross profit actually jumped ~38% YoY to ₹20.22 Cr, led by the AAA (Application/Automation/Analytics) unit — segment revenue ₹130.36 Cr, up 11% YoY, gross profit ₹12.67 Cr vs ₹10.12 Cr. What sank PBT was a ₹15.1 Cr fall in other income (₹6.39 Cr vs ₹21.53 Cr a year ago) and a spike in unallocable expenditure net of unallocable income to ₹13.30 Cr from ₹1.23 Cr — this line carries forex gains/losses and unallocated overheads, so the prior-year base was flattered by one-off/forex income that did not repeat. Cost of third-party products rose to ₹46.84 Cr from ₹34.86 Cr, though employee cost fell to ₹112.77 Cr from ₹121.43 Cr.
The stock went into the print at ₹20.65, up 19.4% over the past month of trading.
Management expects a meaningful step-up in revenue in FY27 after a foundational FY26, driven by stronger sales execution, a CoE-led approach, and expansion in the US and Middle East. While not providing specific quantitative targets, the focus is firmly on accelerating revenue growth while maintaining margin discipline
— This quarter: missed
Against management's own guidance the quarter reads as behind pace: on the Q4 FY26 call management guided a 'meaningful step-up in revenue in FY27' with the repositioned BPS business contributing more from Q2 onwards. A 4.3% YoY topline is not yet that step-up, and BPS revenue actually fell ~20% YoY to ₹13.99 Cr — consistent with the Q2-onwards framing but still a Q1 drag. No formal quantitative guidance was given, and no analyst consensus exists for a company this size, so there is no external estimate to beat or miss. Standalone tells a similar story — revenue ₹75.10 Cr, PAT ₹6.60 Cr, EPS ₹0.32 — with no material divergence from the consolidated read.
W1
BPS revenue recovery from Q2 FY27 — management guided a bigger BPS contribution from Q2; Q1 was still down ~20% YoY at ₹13.99 Cr
W2
The 'meaningful FY27 revenue step-up' management promised — Q1 at +4.3% YoY needs to accelerate to validate the guidance
W3
Other income / forex normalisation — with the ₹21.5→₹6.4 Cr base reset now behind, whether operating margin (segment GP +38% YoY) starts flowing to PBT
Clean digital PDF, unit ₹ Lakh (÷100 to Cr). No exceptional item this quarter (nor year-ago), so raw=adjusted YoY. Consol PBT fell ~52% YoY (₹12.10→₹5.86 Cr) mainly as other income normalised (₹21.53→₹6.39 Cr); PAT decline cushioned by a ₹0.66 Cr tax credit (vs ₹4.55 Cr charge YoY). Consol PAT incl. ₹0.06 Cr minority; owners' share ₹6.46 Cr. Auditor gave a QUALIFIED conclusion (recoverability/going-concern of Middle East & other subs) + going-concern/emphasis-of-matter on several subsidiaries and ongoing forensic-audit legacy matter — no numerical restatement.