Consolidated PAT +55% YoY on margin expansion, but revenue growth trails FY27 guidance
PAT +54.63% YoY · revenue +37.83% · margins expanding
₹196.26 Cr
+37.83% YoY
₹19.71 Cr
+54.63% YoY
10%
+1.2pp YoY
₹8.59
SRM Contractors' consolidated Q1 FY27 (quarter ended June 30, 2026) print showed revenue of ₹196.26 Cr, up 37.8% YoY from ₹142.40 Cr, and PAT of ₹19.71 Cr, up 54.6% YoY from ₹12.75 Cr, taking basic EPS to ₹8.59 from ₹5.56. Sequentially revenue fell 56.0% and PAT 63.6% from Q4 FY26 (₹445.75 Cr / ₹54.09 Cr) — Q4 is the seasonally heaviest quarter for EPC billing certification in this business, so the QoQ drop is not read as underlying weakness. No exceptional items sit in either the current or year-ago quarter, so the YoY growth is clean/unadjusted.
Q1 FY-2027 vs prior quarters
Margins expanded on both comparisons: operating margin (EBITDA/revenue from operations) rose to 19.47% from 14.33% a year ago and 16.69% last quarter, driven by revenue outgrowing cost of materials, direct and employee expenses. Net margin improved to 10.00% from 8.85% YoY but slipped from 11.99% in Q4, likely reflecting higher finance costs and depreciation as the balance sheet has scaled. Standalone (parent-only) results were far more muted — revenue grew just 5.1% YoY to ₹150.32 Cr and PAT 22.0% to ₹15.94 Cr — meaning the consolidated outperformance is concentrated in subsidiaries and joint ventures rather than the core standalone business; readers tracking only the standalone line would see a materially slower story.
The stock went into the print at ₹499.5, up 2.2% over the past month of trading.
For context: PAT has now risen for 3 consecutive quarters.
SRM Contractors provided optimistic guidance for FY27, projecting revenue growth of 45% to 55% and maintaining EBITDA margins between 16% to 18%, with PAT margins around 11%. The company expects a significant increase in its order book to approximately INR4,000 crore by the end of FY27, driven by a strong bid pipeline
— This quarter: missed
Against management's own FY27 guidance from the May concall (revenue growth of 45-55%, EBITDA margin 16-18%, PAT margin ~11%), this quarter's 37.8% YoY revenue growth is running below the guided pace, while operating margin at 19.47% is already above the top of the guided band and net margin at 10.00% is close to but still under the ~11% target — an early, mixed scorecard one quarter into the year. No formal analyst/brokerage consensus for this specific quarter could be located, so vsStreet is not assessed; no management press release accompanying this filing was available to quote directly. The quarter's disclosed developments — ₹501 Cr of new contract wins (June 30) and the planned conversion of the Abu Dhabi branch into a wholly owned subsidiary (July 25) — align with management's stated push into GCC markets and support to the ₹6,000 Cr bid pipeline it cited toward a ₹4,000 Cr order book target by FY27-end, though neither order-book nor pipeline figures were disclosed in this filing itself.
W1
Whether revenue growth accelerates toward the guided 45-55% FY27 band in coming quarters (Q1 ran at 37.8% YoY)
W2
Order book trajectory toward management's stated ~₹4,000 Cr target by FY27-end, off a cited ₹6,000 Cr bid pipeline
W3
Whether net margin recovers toward management's ~11% guided level after slipping to 10.00% this quarter from 11.99% in Q4
Consolidated PBT prints as 2,421.39 lakh in the statement but that figure ties to nothing (Total Income − Total Expenses = 2,427.39 lakh; PBT − Tax must also equal reported PAT 1,971.25 lakh, which only holds at PBT=2,427.39 lakh) — treated as extraction/typographical noise and corrected to ₹24.2739 Cr; standalone figures tie out exactly with no adjustment. No exceptional items in current or year-ago quarter. Consolidated PAT excludes a ₹0.65 lakh JV loss (Total Comprehensive Income ₹19.706 Cr). An unaudited subsidiary contributed ₹34.47 Cr revenue / ₹0.12 Cr PAT to the consolidated numbers, flagged by auditors as not material to the Group.