Hirect Q1FY27: revenue +20% YoY but consol PAT -49% (adj -77%) on Elventive France drag
PAT -49.07% YoY · revenue +20.34% · margins compressing
₹258.45 Cr
+20.34% YoY
₹6.5 Cr
-49.07% YoY
2.47%
-3.5pp YoY
₹2.74
Hirect Limited (formerly Hind Rectifiers) reported consolidated revenue of ₹258.45 Cr for Q1 FY27, up 20.3% YoY but down 7.6% QoQ off a seasonally larger Q4 base. Consolidated net profit for the period came in at ₹6.50 Cr (owners' share ₹9.42 Cr, offset by a ₹2.92 Cr loss attributable to non-controlling interests), down 49.1% YoY on a reported basis. The reported decline understates the real deterioration: this quarter's PBT includes a ₹3.53 Cr exceptional gain that the year-ago quarter did not have, so on a like-for-like basis adjusted consolidated PAT was just ₹2.97 Cr, down 76.7% YoY, and consolidated NPM compressed to 1.15% (adjusted) from 5.94% a year ago.
Q1 FY-2027 vs prior quarters
The entire margin drag is traceable to the EMS segment (Elventive France, formerly Belink Hirect SAS), which posted a ₹8.48 Cr segment loss this quarter — exactly the dynamic management flagged on the Q4 FY26 call, where it said consolidated financials would be impacted by the France ramp-up "over the next six to eight quarters" while the standalone business maintains improving margins. That is borne out here: standalone (core India) revenue grew 10.1% YoY to ₹236.39 Cr and standalone PAT was ₹15.09 Cr (₹11.56 Cr adjusted for the same exceptional item), a much steadier print than the consolidated numbers suggest, confirming the divergence is entirely the France subsidiary and not the core business.
The stock went into the print at ₹1,200.1, up 14% over the past month of trading.
For FY27, the company is committed to a 30% top-line growth on a standalone basis. The long-term vision targets a $1 billion revenue within five years, driven by organic expansion in the core railway franchise, growth in adjacent verticals (defense, mining, power management), and selective inorganic moves. While consol
— This quarter: missed
Against management's own FY27 guidance of 30% standalone revenue growth, Q1's 10.1% YoY standalone growth is well off the pace needed, though only one of four quarters has elapsed. No formal street consensus estimates for this print were found in search, so the result cannot be benchmarked against analyst expectations; vsStreet is marked unknown. Sequentially, the group swung from a ₹1.59 Cr consolidated net loss in Q4 FY26 to this quarter's ₹6.50 Cr profit, but per YoY-anchored convention this QoQ recovery does not offset the year-on-year profit contraction.
W1
EMS segment (Elventive France) loss trajectory — ₹8.48 Cr loss this quarter against management's guidance of a 6-8 quarter drag from the France ramp-up; watch for sequential narrowing
W2
Standalone revenue pace vs the 30% FY27 growth target — Q1 ran at +10.1% YoY, requiring sharp acceleration in coming quarters to hit guidance
W3
Execution continuity through the leadership transition — new Global CEO Chidambaram Balakrishnan (replacing Douglas Bailey) and new CFO Anil Kumar Nemani, both effective August 11, 2026