HLE Glascoat Q1 FY27: consolidated PAT crashes 88% YoY to ₹2 Cr as Heat Transfer swings to loss
PAT -88.5% YoY · revenue +5.92% · margins compressing · miss vs street
₹300.75 Cr
+5.92% YoY
₹2.05 Cr
-88.5% YoY
0.68%
-5.6pp YoY
₹0.4
HLE Glascoat's consolidated PAT collapsed 88.5% YoY to ₹2.05 Cr (from ₹17.87 Cr) and 89.8% QoQ (from ₹20.14 Cr), even as consolidated revenue grew a modest 5.9% YoY to ₹300.75 Cr — the profit decline is not an exceptional-item story (none in either the current or YoY-comparison quarter) but a genuine, like-for-like margin collapse: EBITDA margin (EBITDA/revenue-from-operations) fell to roughly 7.5% from ~14.0% YoY and ~11.2% in Q4FY26, and consolidated NPM dropped to 0.68% from 6.24% YoY and 5.13% QoQ.
Q1 FY-2027 vs prior quarters
The driver is the Heat Transfer Equipment segment, which management had guided in the FY26 concall to grow 15-20% annually for the next couple of years. Instead, its revenue fell 72.6% YoY to ₹10.55 Cr and the segment swung to a ₹4.07 Cr operating loss versus a ₹5.77 Cr profit a year ago — a direct miss against that guidance. Glass Lined Products partially offset this, growing 49.0% YoY to ₹193.13 Cr, while Filtration/Drying revenue slipped 15.9% YoY. Consolidated employee benefits expense also jumped 42.9% YoY to ₹74.71 Cr (broadly flat QoQ), consistent with cost step-up from the Omerastore GmbH integration named among the quarter's consolidated subsidiaries, adding further margin pressure on top of the Heat Transfer shortfall.
The stock went into the print at ₹474.5, up 13.2% over the past month of trading.
Management provided optimistic guidance for FY27, projecting revenue to exceed INR2,000 crores, including contributions from Omeras. They anticipate achieving 15-16% consolidated EBITDA margins within the next two years, with the Indian business expected to achieve over 15% margins. Heat transfer equipment is projected
— This quarter: missed
Standalone tells a materially milder story: standalone PAT fell 28.1% YoY to ₹11.08 Cr (versus consolidated's 88.5% YoY drop), showing the damage is concentrated in the subsidiaries/Heat Transfer business rather than the core India entity — a divergence readers should note rather than reconcile as an error. Against the broader FY27 guidance of consolidated revenue exceeding ₹2,000 Cr and 15-16% consolidated EBITDA margins within two years, this quarter's ~7.5% margin and ₹300.75 Cr revenue (an annualised run-rate near ₹1,203 Cr) leave both targets well off pace, one quarter in. Management issued no dedicated press release with this filing to comment on the shortfall. Separately, the company's CFO resigned effective July 3, 2026, mid-quarter and ahead of this print; no causal link is stated in the filing.
W1
Whether Heat Transfer Equipment recovers toward management's guided 15-20% annual growth next quarter, or the ₹4.07 Cr Q1 segment loss persists
W2
Consolidated EBITDA margin trajectory against management's own 15-16% target (within two years) — currently running near 7.5%, less than half the goal
W3
Full-year FY27 revenue pace against the >₹2,000 Cr guidance — Q1's ~₹1,203 Cr annualised run-rate implies a steep back-half ramp is needed
Statement headers say 'AUDITED' but the columns are marked UNAUDITED and the cover letter confirms unaudited results with a Limited Review Report — treated as unaudited. No exceptional items in current quarter (either basis) or in the YoY comparison quarter, so raw and adjusted growth are identical; Q4FY26 (QoQ base) carried an immaterial ₹0.43 Cr consolidated exceptional item. Consolidated PAT of ₹2.05 Cr splits into ₹2.77 Cr owners' share and ₹(0.72) Cr non-controlling interest loss.