Shilchar Q1 FY27: PAT -50% YoY on margin compression, revenue -15%, off guided pace
PAT -49.7% YoY · revenue -15.2% · margins compressing
₹134.61 Cr
-15.2% YoY
₹20.86 Cr
-49.7% YoY
14.72%
-10.7pp YoY
₹18.24
Shilchar Technologies filed only a standalone result (the company runs a single segment, Transformers & Parts, and does not file a consolidated statement) for Q1 FY27, and it's a weak YoY print. Revenue from operations fell 15.2% year-on-year to ₹134.61 Cr (₹158.75 Cr in Q1 FY26) and standalone net profit dropped 49.7% to ₹20.86 Cr (₹41.49 Cr a year ago); basic EPS nearly halved to ₹18.24 from ₹36.27. The weakness isn't just a tough base effect — sequentially, revenue is down 11.2% and PAT down 26.5% against Q4 FY26 (₹151.65 Cr revenue, ₹28.39 Cr PAT), making this the second straight soft quarter.
Q1 FY-2027 vs prior quarters
The margin bridge points squarely at input costs: cost of materials consumed rose to 68.1% of revenue (₹91.67 Cr on ₹134.61 Cr) from 57.5% a year ago (₹91.34 Cr on ₹158.75 Cr), even as revenue itself shrank — a combination that pulled operating margin down to roughly 15.6% from about 33.0% in Q1 FY26 and 21.0% last quarter, with net margin falling to 14.7% from 25.5% YoY. There are no exceptional items in the statement and the tax rate held steady near 25-26% across all three periods, so the profit decline is entirely operating, not a one-off. A positive ₹6.31 Cr "changes in inventories" charge (versus a ₹1.16 Cr inventory build in Q4 FY26) suggests finished-goods stock was drawn down this quarter rather than added to.
The stock went into the print at ₹4,576, up 1.8% over the past month of trading.
Management provides a conservative revenue guidance of INR 800-850 crores for FY27, to be achieved by running existing capacity at near-full utilization. They aim to restore EBITDA margins to historical levels (~29%) by negotiating price hikes to counter significant commodity inflation. Long-term growth will be driven
— This quarter: missed
No formal analyst consensus for this quarter turned up in a search, so vs-street is unknown; external reports around the FY26 close had flagged roughly ₹35-40 Cr of Middle East export shipments deferred out of Q4 FY26 into Q1 FY27 on logistics disruptions, plus elevated closing inventory earmarked for early dispatch — both would have been tailwinds to this quarter's revenue, yet the print still declined both YoY and QoQ, implying the underlying run-rate was softer than those catch-up dispatches alone would suggest. Against management's own FY27 guidance from the June-quarter concall — ₹800-850 Cr revenue and an EBITDA margin recovery toward the ~29% historical level via price hikes to offset commodity inflation — this quarter is off pace on both counts: ₹134.61 Cr in Q1 needs the remaining three quarters to average ₹222-238 Cr to reach the low end of guidance, and margin moved further from 29% rather than toward it. No management press release accompanied this filing to explain the shortfall.
W1
Whether management's flagged price hikes restore EBITDA margin toward the ~29% historical level — OPM was just ~15.6% this quarter, the toughest test yet of that plan
W2
Revenue trajectory against the ₹800-850 Cr FY27 guidance — Q1 at ₹134.61 Cr requires a sharp ramp (~₹222-238 Cr/quarter average) in the remaining three quarters to reach the low end
W3
Progress on the capacity-doubling expansion slated for April 2027, which management ties to a potential ₹1,500 Cr FY28 turnover