Subros Q1 FY27: revenue +17.5% YoY but cost pressure caps consolidated PAT growth at 1.7%
PAT +1.69% YoY · revenue +17.52% · margins compressing · miss vs street
₹1,032.11 Cr
+17.52% YoY
₹41.52 Cr
+1.69% YoY
4%
-0.6pp YoY
₹6.36
Subros' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue rose 17.5% YoY to ₹1,032.11 Cr (from ₹878.25 Cr) but slipped 1.7% sequentially from ₹1,049.76 Cr in Q4 FY26. Consolidated PAT of ₹41.52 Cr grew just 1.7% YoY (₹40.83 Cr) and fell 15.8% QoQ (₹49.33 Cr), with basic EPS at ₹6.36 versus ₹6.26 a year ago and ₹7.56 last quarter. Standalone and consolidated figures track almost exactly (PAT ₹41.38 Cr, EPS ₹6.34 standalone), since the JV contributes only ₹0.14 Cr to consolidated profit.
Q1 FY-2027 vs prior quarters
The gap between double-digit revenue growth and near-flat profit sits on the raw-material line: cost of materials consumed rose to 75.6% of revenue this quarter, up from 74.8% a year ago and 72.7% last quarter. That pushed EBITDA margin down to 7.83% from 9.34% YoY and 8.80% QoQ, and net margin to 4.00% from 4.62% YoY and 4.66% QoQ. Neither the current nor year-ago quarter carries an exceptional item, so this is a like-for-like margin compression, not a one-off distortion.
The stock went into the print at ₹828.7, up 1.7% over the past month of trading.
Consensus estimates going into the print (TradingView/Univest-aggregated) had pegged revenue near ₹1,131 Cr and EPS near ₹6.80; the actual ₹1,032 Cr and ₹6.36 both came in below those marks — a street miss on both lines. Management issues no formal guidance in this filing and none is on record from prior calls, so there is no company-stated bar to judge against. Separately, the Board used this meeting to approve a Technical Assistance Agreement with DENSO Corporation and Toyota Industries Corporation to localize electric-compressor manufacturing for EVs/hybrids at the Karsanpura, Gujarat plant — a capability build management frames as contributing to future revenue, with no P&L impact this quarter.
W1
Cost-of-materials ratio (75.6% of revenue this quarter) — watch for reversion toward the 72-75% band seen over the trailing four quarters
W2
Ramp of the new DENSO/Toyota electric-compressor localization at Karsanpura, Gujarat — currently zero revenue contribution
W3
Whether PAT growth re-accelerates from this quarter's 1.7% YoY toward the ~15-20% FY27 growth analysts have penciled in
Figures in Rs. Lakhs converted to ₹ Cr (÷100); standalone and consolidated are near-identical since the JV (Denso Subros Thermal Engineering Centre) contributed only ₹0.14 Cr profit; no exceptional items in current or year-ago quarter (the FY26 ₹8.08 Cr Labour Codes charge sits only in the Q4FY26/full-year columns, not in this YoY/QoQ comparison).