SML ISUZU LIMITED Q1 FY27 Results

SML Mahindra (formerly SML Isuzu) opened FY27 with double-digit topline growth but a softer bottom line: standalone revenue from operations rose 13.2% YoY to ₹957.54 Cr (up 6.7% QoQ) while net profit slipped 4.99% YoY to ₹63.62 Cr. The divergence is the story — revenue outran profit because operating margin compressed sharply YoY, with OPM at roughly 10.4% versus 12.41% a year ago (though up slightly from 9.8-10.1% in Q4). PBT itself fell 4.8% YoY to ₹85.28 Cr despite the revenue jump, and net margin narrowed to 6.64% from 7.92% a year earlier.

The squeeze sits largely on employee costs, which climbed 18.9% YoY to ₹68.91 Cr (a full point of revenue), and on mix: Q1 wholesale volumes grew 10% to 5,438 units but were driven by passenger/bus vehicles (+19% to 4,329 units) while higher-margin cargo trucks fell 13% to 1,109 units. Raw-material intensity actually eased (cost of materials ₹622.39 Cr, ~65% of revenue vs 67% a year ago), and finance cost dropped to ₹2.74 Cr from ₹5.09 Cr, but neither offset the wage and mix drag. The +17.4% QoQ jump in PAT flatters the print and is partly seasonal recovery off a soft Q4; on the primary YoY basis this is a margin-compression quarter, not a growth-into-profit one.

The stock went into the print at ₹3,960.3, down 1.8% 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 2 consecutive quarters; revenue is at a 6-quarter high.

Management issued no formal quantitative FY27 guidance on the last call, reaffirming only its long-term FY31 ambition (₹15,000 Cr revenue, 10-12% market share, EV bus launch this fiscal) and flagging 2-3% price hikes to offset inflation — so there is no near-term number to grade this against; the 13% revenue growth is directionally consistent with that trajectory, but the wage inflation it cited is visibly biting the margin. No street consensus estimate is on record for this quarter (small-cap, first full quarter under the SML Mahindra name), so the print cannot be scored as a beat or miss. The results are unaudited and carry an unmodified limited-review opinion from B S R & Co. LLP; the only disclosed uncertainty is an unquantified future EPR/end-of-life-vehicle obligation the company says it cannot yet estimate.