Inspirisys Q1 FY27: consolidated PAT falls 34% YoY to ₹4.07 Cr despite 26% revenue growth
PAT -33.7% YoY · revenue +26.4% · margins compressing
₹106.97 Cr
+26.4% YoY
₹4.07 Cr
-33.7% YoY
3.71%
-3.4pp YoY
₹1.03
Inspirisys' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue rose 26.4% YoY to ₹106.97 Cr, but PAT fell 33.7% YoY to ₹4.07 Cr (EPS ₹1.03 vs ₹1.52) as net margin compressed to 3.71% from 7.09% and operating (EBITDA) margin to 6.04% from 10.12% a year ago. Sequentially the drop looks sharper — revenue down 24.6% and PAT down 53.6% from the seasonally strong March quarter (₹141.77 Cr revenue, ₹8.77 Cr PAT) — a fairly normal Q4-to-Q1 step-down for this systems-integration-heavy book, but the YoY numbers confirm the margin pressure is real and not just a seasonal artifact. There were no exceptional items on either side of the comparison, so the YoY PAT decline is like-for-like.
Q1 FY-2027 vs prior quarters
The pressure sits mainly in the Services segment (74% of consolidated revenue): revenue grew a modest 4.9% YoY to ₹79.41 Cr but segment profit fell 27.2% YoY to ₹9.83 Cr as sub-contracting/outsourcing costs rose 21.9% YoY to ₹34.51 Cr. Systems Integration revenue nearly quadrupled YoY to ₹25.81 Cr (from ₹7.26 Cr) on hardware/software pass-through business, but the segment stayed loss-making at -₹0.33 Cr (narrower than -₹1.17 Cr a year ago) — scale hasn't yet converted to segment profit. The effective tax rate also rose to 31.1% from 23.8% a year ago and 24.7% last quarter, an added drag on PAT beyond the PBT-level compression. Standalone PAT fell a shallower 21.0% YoY to ₹4.28 Cr versus the consolidated 33.7% decline — consolidated finance costs rose 44.9% YoY to ₹1.84 Cr and the loss-making overseas subsidiaries add further drag at the group level, so readers comparing the two bases will see standalone looking meaningfully better.
The stock went into the print at ₹102.95, up 0.1% over the past month of trading.
What the summary numbers don't show
Margins compressed on both counts — NPM 3.71% (vs 7.09% YoY, 5.96% QoQ); OPM 6.04% (vs 10.12% YoY, 7.73% QoQ)
Management gives no formal guidance or outlook on record, and no analyst/street estimates were found for this small-cap in a web search (no active coverage identified), so vsGuidance and vsStreet are both unknown rather than assumed inline. No management press release or commentary was available in the source set to cross-check against these numbers. Separately, alongside the results the company disclosed that an earlier-period ₹1.09 Cr tax demand was dismissed by the Appellate Tribunal on August 10, 2026 — favourable but P&L-immaterial this quarter.
W1
Services segment margin recovery — sub-contracting/outsourcing costs (₹34.51 Cr, +21.9% YoY) need to moderate against ₹79.41 Cr Services revenue for NPM to move back toward last year's ~7%
W2
Systems Integration segment profitability — still loss-making (-₹0.33 Cr) despite revenue nearly quadrupling YoY to ₹25.81 Cr
W3
Effective tax rate trajectory — jumped to 31.1% this quarter from 23.8-24.7% in the trailing two quarters; normalisation would lift PAT even at flat PBT
Converted from ₹ Lakhs (÷100). Source's 'Total Expenses' row excludes finance costs & D&A (shown separately before PBT); PBT reconciles once those are added back, on both statements. No exceptional items this quarter on either side of the YoY/QoQ comparison (the ₹3.81 Cr Labour Code exceptional hit only the FY26 annual/Q4 balancing figure). Consolidated PAT includes 3 overseas subsidiaries reviewed by another auditor (combined revenue ₹6.87 Cr, net loss ₹0.19 Cr).