India Nippon Q1FY27: revenue +35.5% YoY outpaces 16% PAT growth as margins compress
PAT +16.01% YoY · revenue +35.51% · margins compressing
₹304.48 Cr
+35.51% YoY
₹27.03 Cr
+16.01% YoY
8.65%
-1.2pp YoY
₹11.95
India Nippon Electricals reported standalone Q1 FY27 (quarter ended June 30, 2026) revenue from operations of ₹304.5 Cr, up 35.5% year-on-year from ₹224.7 Cr and a modest 1.7% sequentially from ₹299.5 Cr. Net profit came in at ₹27.0 Cr, up 16.0% YoY from ₹23.3 Cr — a real gain, but the bottom line clearly did not keep pace with the topline. Net profit margin compressed to 8.9% from 10.4% a year ago, and PBT margin fell to 11.4% from 13.6%. The squeeze did not originate at the operating level — EBITDA margin was broadly stable at ~10.5% versus ~10.2% a year ago — but sat below it: other income dropped to ₹8.1 Cr from ₹12.0 Cr (-32% YoY), and depreciation rose to ₹5.2 Cr from ₹4.2 Cr (+24%) on a growing asset base. The sequential PAT decline (-32.1% from ₹39.8 Cr in the March 2026 quarter) is a base-effect artifact rather than a genuine slowdown: that quarter's profit included a one-off ₹15.2 Cr exceptional gain from a Haryana land-compensation settlement that does not recur here.
Q1 FY-2027 vs prior quarters
There is no analyst consensus or brokerage preview available for this smallcap auto-ancillary name, and the company has issued no formal forward guidance in our records or in this filing — vs-street and vs-guidance are both unknown, so the print has to be read on its own merits rather than against an external bar. No management commentary or press release accompanied the results beyond the standard SEBI Regulation 33 disclosures. The other material item in this filing is a leadership change disclosed alongside the results: CFO Elango Srinivasan moves to a newly created "Special Projects Head – Finance" role effective October 1, 2026, with Saravana Kumar M — a chartered accountant with over 25 years at Bosch and SEG Automotive India, including SOX and risk-management leadership — named incoming CFO from the same date. This is a governance transition unconnected to the operating numbers, but worth tracking given it lands right at the start of FY27.
The stock went into the print at ₹1,135, up 2.4% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Basic/diluted EPS ₹11.95 for the quarter (not annualised), up from ₹10.30 a year ago.
Company no longer prepares consolidated results — sole subsidiary PT Automotive Systems Indonesia was dissolved effective June 25, 2025.
Effective tax rate eased to 22.4% from 23.7% YoY.
W1
Other income run-rate — fell to ₹8.1 Cr in Q1 FY27 from ₹12.0 Cr YoY; watch whether it normalizes, since it was the main drag on PBT margin this quarter.
W2
Depreciation trajectory — up 24% YoY to ₹5.2 Cr on a growing asset base; track whether this keeps pressuring PBT margin in coming quarters.
W3
CFO transition completes October 1, 2026 — watch for continuity in financial reporting and controls as Saravana Kumar M succeeds Elango Srinivasan.
Figures in the source are in ₹ Lacs, converted to ₹ Crore (÷100). No consolidated statement — sole subsidiary PT Automotive Systems Indonesia dissolved effective 25-Jun-2025, so consolidation is no longer required. Prior quarter (31-Mar-26) is a balancing figure with a ₹15.21 Cr one-off exceptional gain (Haryana land-compensation settlement); no exceptional item in the current or year-ago quarter. Filing also discloses a CFO transition effective 01-Oct-2026.