The Anup Engineering Ltd Q1 FY27 Results

ANUPQ1 FY27 ResultsAnnounced 6 Aug, 11:58 am

Result:Poor· Market: Crashed#Margin squeeze#Cost led

Beat/Miss: Miss · Outlook: Negative · Guidance: Cut

Metric	Value (₹ Cr)	Q4 FY26	Q1 FY26
Revenue	125.25	39.7%	28.5%
Total Income	125.77	39.6%	29.2%
Expenditure	124.84	30.4%	12.3%
PBT	0.93	96.8%	97.3%
Net Profit	0.57	97.8%	97.8%
OPM	7.56%	10.84pp	15.47pp
NPM	0.45%	12.31pp	14.34pp
EPS	0.28	97.9%	97.9%

View full financials

Revenue fell 28.5% YoY and adjusted PAT collapsed 97.8% on operating deleverage and cost inflation with EBITDA margin nearly halving, a clear operational miss vs street with no offsetting positives.

THE ANUP ENGINEERING LTD · QQ1 FY-2027 · THE CALL

Severe margin collapse masks recovery hopes—FY26 guidance massively missed

The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.

19 Aug 2026 · 6 min read

Verdict

Sell

confidence 8/10

Credibility

Grade D

FY26 guidance (15-20% growth, 22% EBITDA margin, 50%+ exports) withdrawn by massive misses; Q1 shows no tangible recovery—pipeline unproven.

Short-term outlook

Negative

next 1–2 quarters

Long-term outlook

Cautiously Optimistic

multi-year

Anup missed all FY26 guidance by massive margins: revenue -28.5% YoY (not +15-20%), NPM 0.5% (not 22% EBITDA), exports in retreat (not >50%). Management offers vague recovery linked to a ₹1.1k Cr inquiry pipeline with no firm orders, conversion risk, or timeline. Q1 shows zero margin expansion—OPM 7.6%, NPM 0.5%—contradicting claims of structural improvement. The key risk: order pipeline may not materialize, exports may remain weak, working capital stress may persist. Confidence in guidance restored only when firm orders materialize and margins begin to recover.

₹125.2 Cr

Revenue · −28.5% YoY

₹0.6 Cr

Reported PAT · −97.8% YoY

Compressing

Margins · vs guidance: Overstated

Did the claims hold up?

Management's claims vs. the numbers

₹1,100 Cr inquiry pipeline supports recovery

OVERSTATED

Revenue -28.5% YoY to ₹125.2 Cr; inquiry vs order conversion unclear; no near-term revenue visibility

Exports exceed 50% (prior guidance)

MISS

Transcript does not quantify export %; export stress evident from decline. Prior target not met.

EBITDA margin around 22% (FY26 guidance)

MISS

NPM compressed to 0.5%; OPM 7.6%. Q1 utter margin collapse vs 22% target.

Improved working capital management planned

Partial

Working capital stress cited; no metrics or timeline given. Defensive tone on execution.

Earnings quality

What changed since the last call

Deltas vs. the prior call

FY26 revenue growth guidance

Withdrawn

Prior: 15-20% growth guidance; Q1 showed -28.5% YoY. Guidance implicitly cut by massive miss; no revised FY27 target stated.

EBITDA margin target

Withdrawn

Prior: ~22% EBITDA margin; Q1 NPM 0.5%, OPM 7.6%. No revised margin target; recovery vague and unquantified.

Export % contribution

Downgrade

Prior: >50% exports; Q1 shows export stress. Management silent on export %; no recovery credibility.

The Q&A

Analysts pressed hard on margins, working capital, and order pipeline conversion. Management acknowledged stress but offered only vague recovery plans, no timelines, no metrics. Tone defensive—management did not hold ground on guidance credibility.

The exchanges that mattered

Margin recovery timing — Unnamed analyst

Partial

Management cited cost reduction initiatives and pricing adjustments underway by H2 FY27; no specific margin target or % recovery path provided.

Order pipeline conversion — Unnamed analyst

Dodged

Pipeline is robust and we are confident; specifics on conversion rate, timeline, or firm order status withheld.

Working capital cycle — Unnamed analyst

Dodged

Working capital under management; improvement initiatives underway; no actual metrics (DSO, DIO, days payable) disclosed.

Export revenue recovery — Unnamed analyst

Dodged

Export business is being revived; prior guidance >50% reiterated without current % or timeline.

Guidance

Forward guidance and management's confidence

Prior FY26: 15-20% growth; Q1 -28.5% YoY (guidance missed)

Low

Guidance implicitly withdrawn by massive miss. FY27 revenue target not stated.

Recovery by H2 FY27 (vague, no number)

Low

Management confident on ₹1.1k Cr pipeline; no conversion %, firm order count, or revenue contribution quantified.

Prior FY26: ~22% EBITDA margin; Q1 delivered OPM 7.6%, NPM 0.5%

Low

Margin target implicitly cut. No revised FY27 margin target. Recovery plan: cost reduction & pricing (unquantified).

Risks the call surfaced

Ranked by how much they should concern a holder

Order pipeline conversion

High

₹1.1k Cr inquiry pipeline is pre-order stage. Conversion rate, timeline, and firm order status undisclosed. If pipeline stalls, no revenue recovery.

Export revenue decline

High

Prior guidance: exports >50% of revenue. Q1 shows export stress; % not disclosed. If exports do not recover, revenue base permanently lower.

Margin compression unresolved

High

Q1 NPM 0.5%, OPM 7.6% vs ₹22% EBITDA prior guidance. Cost inflation, pricing pressure, or mix deterioration evident. Recovery plan vague (cost reduction, pricing); no timeline or credibility.

Working capital stress

Medium

Management cites working capital deterioration; no turnover metrics, days of payable outstanding, or recovery timeline provided. If not resolved, cash flow squeeze risk.

Management credibility erosion

High

FY26 guidance (15-20% growth, 22% EBITDA, 50%+ exports) missed by massive margins. Recovery claims lack execution proof; Q1 shows no tangible progress. Investor trust in forward guidance at historical lows.

Management

Score 4/10. Defensive & evasive. Management acknowledged margin collapse & working capital stress but withheld metrics (DSO, DIO, export %, conversion rates). Vague on recovery timeline. Poor. Missed FY26 guidance on all key metrics: revenue -28.5% vs +15-20%, EBITDA margin 7.6% OPM vs ~22%, exports in retreat. Q1 shows no recovery execution.

What to watch next

1 · Q2-Q3 FY27
Inquiry pipeline conversion to firm orders; export revenue stabilization
2 · H2 FY27
Margin recovery initiative results—cost reduction, pricing power, or product mix improvement
3 · Ongoing
U.S.-India trade deal resolution impact (prior mention); order book visibility

Confidence in guidance restored only when firm orders materialize and margins begin to recover.

Q1 FY-2027 RESULTS · ANUP

Anup Engineering Q1 FY27: PAT craters 98% YoY, revenue down 29%, margins collapse

PAT -97.83% YoY · revenue -28.53% · margins compressing · miss vs street

06 Aug 2026 · 3 min read

Revenue

₹125.25 Cr

-28.53% YoY

PAT (consolidated)

₹0.57 Cr

-97.83% YoY

Net margin

0.45%

-14.3pp YoY

EPS

₹0.28

The Anup Engineering's consolidated Q1 FY27 (quarter ended June 30, 2026) print was a sharp break from trend: revenue fell 28.5% YoY to ₹125.25 Cr (₹175.23 Cr a year ago) and 39.8% QoQ (₹207.86 Cr last quarter), while consolidated PAT collapsed to just ₹0.57 Cr — down 97.8% YoY from ₹26.26 Cr and 97.8% QoQ from ₹26.54 Cr. Basic consolidated EPS fell to ₹0.28 from ₹13.11 a year ago. Standalone told the same story at smaller scale: revenue ₹117.89 Cr, PAT ₹1.11 Cr versus ₹25.53 Cr a year ago.

The scoreboard

Q1 FY-2027 vs prior quarters

Consolidated P&L, ₹ Crore

	Q1 FY-2027	QoQ	YoY
Revenue	₹125.25 Cr	-39.7%	-28.5%
Expenses	₹124.84 Cr	-30.4%	-12.3%
PAT	₹0.57 Cr	-97.85%	-97.83%
Net margin	0.45%	-12.3pp	-14.3pp
EPS	₹0.28	-97.9%	-97.9%

The compression sits almost entirely in the cost lines relative to a much smaller revenue base. Consolidated EBITDA margin (PBT + finance cost + depreciation, over revenue) fell to roughly 8% from ~23% a year ago and ~18.5% last quarter, and net margin fell to 0.46% from 14.79% YoY. Other expenses rose to 32.4% of revenue from ~22.1% a year ago, materials cost ratio rose to 45.8% from 42.7%, and employee cost ratio rose to 10.6% from 7.1% — a mix of genuine cost inflation and operating deleverage as fixed and semi-fixed costs were spread over 29% less revenue. Neither the current nor year-ago quarter carries an exceptional item, so this is a purely operational miss, not accounting noise. Consolidated PAT trailing standalone PAT by ₹0.54 Cr points to a loss at wholly-owned subsidiary Mabel Engineers Private Limited this quarter.

₹

The tape into the print — daily closes, last 3 months

The stock went into the print at ₹1,972.7, down 7.6% over the past month of trading.

₹ Cr

Quarterly consolidated PAT, ₹ Crore

What management guided (3 FY-2026 call)

Management maintains its FY'26 guidance for 15-20% revenue growth with an EBITDA margin around 22% and exports exceeding 50%. The company expects to improve working capital turns and is optimistic about future growth, supported by a robust INR 1,100 crore inquiry pipeline and the resolution of the U.S.-India trade deal

— This quarter: missed

Management's most recent guidance on record (Q3 FY26 concall) called for 15-20% FY26 revenue growth and an EBITDA margin around 22%, alongside exports exceeding 50% — that guidance was framed for the fiscal year just closed, and no fresh FY27 outlook is available in this filing, so it can only be read directionally: this quarter's -28.5% YoY revenue and ~8% margin are a clear break from that trajectory. Ahead of the print, ICICI Securities' Q4 FY26 note flagged a "muted H1FY27E" given the company's selective, fixed-price bidding stance amid volatile commodity costs, even as it noted FY26 EBITDA margins had held near 21% — the actual ~8% margin undershoots even that cautious framing, and no specific consensus PAT estimate could be confirmed for this quarter. The quarter's other corporate actions — the ₹12/share final dividend (record date August 14) and the FY26 annual report/BRSR filings — are routine year-end items unconnected to the operating miss.

W1
Whether OPM recovers toward management's ~22% FY26 EBITDA margin band in Q2 FY27, from Q1's ~8% print
W2
Whether revenue stabilizes versus this quarter's -28.5% YoY / -39.8% QoQ decline, against management's now clearly-broken 15-20% FY26 growth guidance
W3
Whether subsidiary Mabel Engineers returns to profit — its swing to loss cost consolidated PAT ~₹0.54 Cr versus standalone this quarter

Both standalone and consolidated columns for 30.06.2026 and 30.06.2025 show no exceptional item (dash) — the ₹130.52 Lakh (standalone)/₹145.26 Lakh (consolidated) labour-code past-service-cost exceptional charge sits only in the FY26 full-year column, so no adjustment needed for this YoY comparison. Consolidated PAT (₹0.5702 Cr) trails standalone PAT (₹1.1081 Cr) by ₹0.5379 Cr, indicating subsidiary Mabel Engineers Pvt Ltd swung to a loss this quarter. Scan is legible, all comparison-context figures (prior quarter/year-ago revenue, PAT, EPS) matched the PDF's consolidated columns exactly.