Prakash Industries Q1FY27: PAT falls 22% YoY to ₹71 Cr on new tax regime, not ops
PAT -22.02% YoY · revenue -0.49% · margins compressing
₹1,032 Cr
-0.49% YoY
₹71.27 Cr
-22.02% YoY
6.86%
-1.9pp YoY
₹3.98
Prakash Industries reported standalone revenue of ₹1,032 Cr for Q1 FY27, flat YoY (-0.5% vs ₹1,037 Cr) and up 12.2% sequentially from a seasonally soft Q4 FY26 (₹920 Cr). Net profit fell sharply to ₹71.3 Cr, down 22% YoY (₹91.4 Cr) and 24% QoQ (₹93.3 Cr), with EPS at ₹3.98 against ₹5.10 a year ago and ₹5.21 last quarter. Reported net margin compressed to 6.9% from 8.8% YoY and 10.1% QoQ.
Q1 FY-2027 vs prior quarters
The headline profit drop is not an operating story. Pre-tax profit actually rose to ₹92.7 Cr from ₹91.4 Cr YoY (+1.5%), and per the company's press release EBITDA grew to ₹154 Cr from ₹144 Cr (+6.9% YoY), with EBITDA margin expanding to 14.9% from 13.9%. The entire swing sits in the tax line: effective tax rate jumped to ~23% this quarter from near-zero a year ago, after the company opted into the new tax regime under the Income Tax Act, 2025 effective 1 April 2026, which took away its Section 80-IA exemption. The prior-year and immediately preceding quarter both carried MAT credit entitlements that fully offset current tax, masking the now-higher structural tax rate.
The stock went into the print at ₹121.9, down 5.2% over the past month of trading.
Neither the database nor a web search turned up formal management guidance or street consensus estimates for this quarter — Prakash Industries is not widely covered by brokerage previews, so vsGuidance and vsStreet are both unknown. On the operating side, the company extracted 3.3 lakh MT of coal from its Bhaskarpara mine during the quarter and is targeting 1.2 million tonnes for FY27, following an Environmental Clearance (granted 12 June 2026) to raise mine capacity from 1.0 to 1.2 MTPA. Separately, the auditor's review report notes a ₹165 lakh deferred tax liability adjusted directly against Securities Premium under a court order rather than run through the P&L — a non-recurring accounting treatment worth tracking for consistency in future quarters.
W1
Effective tax rate — now structurally ~23% post-80-IA loss; track whether it holds near this level through FY27 rather than reverting
W2
Coal extraction pace — 3.3 lakh MT in Q1 against a full-year FY27 target of 1.2 Mn tonnes (~3 lakh MT/quarter run-rate needed)
W3
Deferred tax treatment — ₹165 lakh adjusted against Securities Premium under a court order this quarter; watch if this non-P&L treatment recurs
Standalone only — company has one segment (Iron & Steel), no consolidated statement filed. Filing's Note 4 states PAT as ₹7,147 lakh vs the results table's ₹7,127 lakh (₹20 lakh mismatch, likely a typo in the note); table figure used, corroborated by the press release's ₹71 Cr. PBT (+1.5% YoY) and EBITDA (+6.9% YoY, per press release) both rose, so the PAT decline is entirely tax-driven — loss of Sec 80-IA exemption after the company adopted the new tax regime under the Income Tax Act, 2025 w.e.f. 1 Apr 2026 — not an operating weakness. Auditor also flagged a ₹165 lakh deferred tax liability adjusted against Securities Premium (court order); under Ind AS-12 this would have cut reported PAT by a further ₹164 lakh.