Faze Three Q1 FY27: consolidated PAT falls 24% YoY to ₹9.64 Cr on margin compression
PAT -24.51% YoY · revenue +8.22% · margins compressing
₹229.39 Cr
+8.22% YoY
₹9.64 Cr
-24.51% YoY
4.1%
-1.8pp YoY
₹3.96
Faze Three's Q1 FY27 (quarter ended June 30, 2026) consolidated profit fell 24.5% YoY to ₹9.64 Cr on revenue of ₹229.39 Cr, up 8.2% YoY — topline growth that did not translate into bottom-line growth. There is no formal management guidance on record for this quarter, and no analyst consensus or street estimate could be located for this small-cap exporter, so the print cannot be benchmarked against either; it is assessed purely on its own YoY and QoQ trend.
Q1 FY-2027 vs prior quarters
The shortfall sits in margins. Cost of materials consumed rose to 60.3% of consolidated revenue from 57.9% a year ago, pointing to raw-material cost inflation that outpaced pricing pass-through. Operating profitability (EBITDA before other income, as a % of revenue) fell to 9.32% from 11.63% in Q1 FY26 and 12.26% in Q4 FY26. Finance costs added to the squeeze, up 34.6% YoY to ₹5.64 Cr, and the effective tax rate climbed to 27.9% from 25.4% — together pulling net margin down to 4.20% from 5.92% a year ago and 6.99% last quarter. On a standalone basis the decline is sharper still (PAT -31.3% YoY to ₹8.77 Cr on revenue +4.0% YoY to ₹212.84 Cr), implying the Group's subsidiaries were, on net, accretive to consolidated profit this quarter even though auditors flag one unreviewed subsidiary posted a ₹2.10 Cr net loss for the period.
The stock went into the print at ₹610, up 1.5% over the past month of trading.
What the summary numbers don't show
No exceptional items in either standalone or consolidated statement — results are unaudited (limited review, unmodified auditor conclusion)
Sequentially, revenue is down 17.2% and PAT down 50.8% from Q4 FY26, but Q1 (April-June) is typically the softer season for this home-textile exporter relative to Q4, so the QoQ slide should not be read as fresh deterioration — the YoY comparison is the more meaningful read. Among the quarter's developments, the company received PLI Scheme approval for MMF (man-made fibre) and technical textiles on July 1, 2026, a potential incentive/capacity tailwind not yet reflected in these numbers; it also granted 3.31 lakh ESOPs during the quarter and saw an independent director's tenure conclude. No management press release accompanying the results was available to cross-check the company's own framing.
W1
Whether the COGS/revenue ratio (60.3% this quarter) and OPM (9.32%) revert toward the ~11-12% band seen through FY26
W2
Whether the July 2026 PLI Scheme approval for MMF/technical textiles shows up as disclosed capex, capacity, or volume gains in coming quarters
W3
Whether the loss-making subsidiary (₹2.10 Cr net loss this quarter, per auditor's note) narrows or persists
No exceptional items in either statement; minority interest nil. One unreviewed subsidiary contributed ₹7.49 Cr revenue and a ₹(2.10) Cr net loss per the auditor's note. Standalone PAT fell more steeply than consolidated (-31.3% vs -24.5% YoY), implying subsidiaries were net accretive despite one loss-making unit. Results unaudited, limited review with unmodified conclusion.