SAR Auto Q1 FY27: revenue up 135% YoY, PAT +221%, but operating margin compresses
PAT +221.3% YoY · revenue +134.95% · margins compressing
₹5.33 Cr
+134.95% YoY
₹0.37 Cr
+221.3% YoY
6.56%
+2pp YoY
₹0.78
SAR Auto Products reported standalone revenue from operations of ₹5.33 Cr for Q1 FY27 (quarter ended 30 June 2026), up 134.9% year-on-year from ₹2.27 Cr in Q1 FY26, though down 12.3% sequentially from ₹6.08 Cr in Q4 FY26. PAT came in at ₹0.371 Cr, up 221.3% YoY from ₹0.116 Cr and up 81.1% QoQ from ₹0.205 Cr; basic EPS (not annualized) was ₹0.78 against ₹0.24 a year ago and ₹0.43 in the prior quarter. Total income (including other income of ₹0.032 Cr) was ₹5.65 Cr against total expenses of ₹5.28 Cr, and the arithmetic ties out cleanly against the filed statement.
Q1 FY-2027 vs prior quarters
Operating margin (OPM, computed as PBT + finance costs + depreciation − other income, over revenue) came in at 12.6% versus 16.6% a year ago — a YoY compression driven by cost of materials consumed rising faster than revenue (net material cost, after the inventory adjustment, moved from roughly 35% of revenue a year ago to roughly 53% this quarter). Net profit margin nonetheless improved to 6.6% from 4.6% YoY, but that is largely a below-the-line effect: the company booked nil current and deferred tax this quarter versus ₹0.230 Cr of current tax in Q4 FY26, so the PAT/EPS beat overstates the improvement in core operating performance. There is no prior management guidance or concall commentary on record, and a web search turned up no analyst estimates or street previews for this micro-cap (paid-up equity capital of ₹4.76 Cr) — so both vsGuidance and vsStreet are unknown, and no management press release beyond the board-outcome letter was available. That letter otherwise covered governance matters — the resignation of independent director Vijay N. Kalariya and the appointment of Harsh M. Radiya in his place, both effective 3 August 2026 — unrelated to the quarter's financial performance. The company operates in a single reportable segment (manufacturing of gears, gearboxes and transmission components).
The stock went into the print at ₹4,205, up 54.7% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records.
What the summary numbers don't show
Results are unaudited, subject to statutory auditors' limited review, which found no material misstatement
W1
Whether YoY revenue growth (off a thin ₹2.27 Cr base) sustains or normalizes toward the ₹5-6 Cr quarterly run-rate seen through FY26
W2
Tax provision: nil in Q1 FY27 vs ₹0.230 Cr in Q4 FY26 — watch whether tax normalizes and pulls PAT/EPS growth down in coming quarters
W3
OPM trajectory — track whether the YoY compression to 12.6% (from 16.6%) persists as material cost pressure continues
Source statement is in ₹ Lakhs (converted /100 to ₹ Cr); nil current and deferred tax this quarter (vs ₹0.230 Cr tax in Q4 FY26) flatters PAT/EPS vs the OPM trend; no exceptional items; single segment (gears/gearboxes/transmission components); standalone-only filing, results unaudited but auditor's limited review found no misstatement.