KMEW Q1 FY27: consolidated PAT +466% YoY to ₹62.7 Cr, crushes Street on falling tax rate
PAT +466.06% YoY · revenue +138.11% · margins expanding · beat vs street
₹115.41 Cr
+138.11% YoY
₹62.75 Cr
+466.06% YoY
52.9%
+30.3pp YoY
₹25.67
Consolidated revenue from operations came in at ₹115.41 Cr for the quarter ended June 30, 2026, up 138.1% YoY from ₹48.47 Cr and up 70.7% QoQ from ₹67.62 Cr in Q4 FY26. Consolidated PAT (pre-minority interest) was ₹62.75 Cr against ₹11.08 Cr a year ago (+466.1% YoY) and ₹23.53 Cr in Q4 FY26 (+166.7% QoQ), with profit attributable to the parent at ₹61.73 Cr and basic EPS of ₹25.67 (not annualised) versus ₹10.43 YoY. No exceptional items appear in either period, so the growth is on a clean like-for-like basis. Standalone results (secondary) track the consolidated print closely — revenue ₹115.41 Cr, PAT ₹60.82 Cr, EPS ₹24.87 — with no material divergence between the two bases this quarter.
Q1 FY-2027 vs prior quarters
NPM expanded to 52.9% of total revenue from 22.6% YoY, and OPM (EBITDA/revenue from operations) to 63.6% from 41.1% YoY. Part of this is a falling effective tax rate: total tax of ₹2.59 Cr on PBT of ₹65.33 Cr works out to 2.24% of revenue, down from 4.81% a year ago — progress toward, but still above, management's Feb 2026 concall guidance of a sub-1%-of-turnover rate under the new tonnage tax scheme. Operating leverage did real work too: total expenses rose only 49.6% YoY (₹35.62 Cr to ₹53.28 Cr) against 138% revenue growth. The mix shifted domestic — Dredging & Ancillary Services carried the quarter at ₹104.41 Cr (from ₹26.99 Cr YoY) alongside ₹21.22 Cr from Ship Building, while the Bahrain and Myanmar segments, which contributed ₹14.40 Cr and ₹7.09 Cr a year ago, recorded nil revenue this quarter.
The stock went into the print at ₹2,730.8, up 12.3% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 4 consecutive quarters; revenue is at a 6-quarter high.
Management expects the strong Q3 performance to be the new benchmark going forward, supported by a massive INR 1,500 crore order book and a robust INR 3,000 crore bid pipeline. Profitability will be significantly enhanced by the new tonnage tax scheme, expected to reduce the tax rate to less than 1% of turnover. The co
— This quarter: beat
The print is a large beat against the Street: pre-result previews (Univest) had pencilled in ₹68-79 Cr revenue and ₹15-19 Cr PAT for the quarter, and the actual ₹115.41 Cr / ₹62.75 Cr cleared both ranges comfortably. It also validates management's Q3 FY26 call that strong quarterly performance would become the new benchmark — Q1 FY27 revenue is nearly double the ₹67.62 Cr posted in the immediately preceding quarter. The same board meeting also approved a 1:5 stock split (face value ₹5 to five shares of ₹1) to widen the shareholder base, and confirmed the ₹149.99 Cr preferential allotment at ₹1,962.53/share (approved June 26) was completed with allotment on August 4 — funding for the fleet-expansion and new-shipyard capex management outlined last quarter. Separately, the company secured a ₹11.4 Cr work order from Paradip Port Authority on August 10, adding to the order pipeline management cited in February.
W1
Effective tax rate — 2.24% of revenue this quarter, down from 4.81% YoY; watch for further decline toward management's guided <1% of turnover as the tonnage tax scheme phases in.
W2
Order-book execution — management's Feb 2026 concall cited a ₹1,500 Cr order book and ₹3,000 Cr bid pipeline; Q1's ₹115.41 Cr run-rate needs to sustain to confirm the pipeline is converting.
W3
Bahrain/Myanmar overseas revenue was nil this quarter versus ₹14.40 Cr/₹7.09 Cr YoY — watch whether overseas contracts resume or growth stays India-dredging-concentrated.