Financial Performance Overview

Revenue: Operating revenue for Q1FY27 was ₹3,628 million, representing an increase of approximately 23% Year-over-Year (YoY) from ₹2,955 million in Q1FY26. Sequentially, revenue increased from ₹3,242 million in Q4FY26.

EBITDA: EBITDA for the quarter was ₹40 million, a decrease of approximately 77% YoY from ₹176 million in Q1FY26. Sequentially, it decreased from ₹60 million in Q4FY26. The EBITDA margin was 1.1%, down from 5.9% in Q1FY26 and 1.8% in Q4FY26.

Profit/(Loss): The company reported a Loss Before exceptional item of ₹(38) million, a significant decline from a profit of ₹127 million in Q1FY26. Sequentially, the loss increased from a loss of ₹(17) million in Q4FY26.

Net Working Capital: Net working capital stood at ₹59 million, down from ₹701 million. The working capital cycle improved to ~54 days from ~59 days.

Reasons for Margin Compression

The disclosure cites three primary reasons for the severe compression in Gross Margin (~640 bps YoY) and EBITDA Margin:

1. A sharp surge in polymer prices driven by higher crude oil prices due to geopolitical conflict (war), alongside an escalation in metal prices (especially aluminium).

2. The depreciation of the Indian Rupee (INR) against the US Dollar (USD).

3. An unanticipated large revision (~25%) in the minimum wage in Ghaziabad, effective April 1, 2026.

4. A change in product mix, with a decline in higher gross margin products being replaced by low gross margin products.

Segment-wise Revenue Breakdown (₹ million)

| Segment | Q1-FY26 | Q1-FY27 | Q4-FY26 |

| Lighting, Fans & Switches | 801 | 1,060 | 940 |

| • Lighting | 395 | 514 | 395 |

| • Flashlights | 94 | 75 | 52 |

| • Fans | 278 | 429 | 459 |

| • Switches | 34 | 41 | 35 |

| Small Appliances | 686 | 1,106 | 940 |

| • Kitchen & Home Care | 424 | 732 | 617 |

| • Personal Care | 262 | 374 | 323 |

| FHP Motors | 614 | 456 | 457 |

| • Consumer Durables | 479 | 396 | 352 |

| • Fans | 74 | 19 | 61 |

| • Others | 62 | 41 | 43 |

| Other EMS | 154 | 193 | 193 |

| Total EMS | 2,255 | 2,815 | 2,530 |

| Precision Components & Others | 613 | 712 | 596 |

| Medical Cartridges | 87 | 101 | 116 |

| Total Non-EMS | 700 | 813 | 712 |

| Total Revenue | 2,955 | 3,628 | 3,242 |

Segment-wise Business Discussion

Lighting, Fans & Switches (₹1,060 million, +32% YoY): Growth was led by newly added customers ramping up. However, a product mix shift from higher-margin downlights to lower-margin battens (where prices could not be increased due to irrational competition) impacted profitability. Fans revenue grew ~75% YoY, driven by better volumes, particularly in BLDC ceiling fans and the TPW (Tropical White) category.

Small Appliances (₹1,106 million, +61% YoY): Kitchen & Home Care grew ~70% YoY on strong volume growth. Personal Care grew 43% YoY, led by hair dryers and sterilizers. The segment faced severe margin pressure from rising commodity prices, which was adjusted with customers effective July 2026 based on Q1 average commodity prices.

FHP Motors (₹456 million, -26% YoY): The decline was attributed to reduced volumes in chimney and mixer grinder motors due to sharp price increases. The 'Others' category (synchronous motors, terminal blocks) was impacted as customers shut production in March 2026 due to a gas crisis caused by the war.

Expenditure Analysis (% of Revenue)

| Expense Line | Q1-FY26 | Q1-FY27 | Q4-FY26 |

| Employee Benefits | 14.5% | 13.5% | 12.9% |

| Other Expenses | 7.5% | 6.9% | 7.9% |

| EBITDA w/o Other income | 5.9% | 1.1% | 1.8% |

| Finance Costs | 0.7% | 0.8% | 0.7% |

| Depreciation | 2.0% | 2.0% | 2.0% |

| PBT (pre-exceptional) | 4.3% | -1.0% | -0.5% |

Capital Expenditure (Capex) Overview (₹ million)

| Capex Type | Ghaziabad | Baddi | Goa | Total Q1FY27 |

| Land & Building | 2.7 | 0.0 | 0.0 | 2.7 |

| Plant & Machinery | 34.0 | 8.2 | 1.6 | 43.8 |

| Electrical Installation | 1.6 | 1.4 | 0.0 | 3.0 |

| Tools, Dies & Moulds | 5.5 | 13.2 | 2.2 | 20.9 |

| Others | 4.3 | 1.0 | 0.0 | 5.3 |

| Total | 48.1 | 23.7 | 3.8 | 75.6 |

Plant & Machinery additions were primarily for MG motor and press shop automation. Tools, Dies & Moulds were for new product development. An additional ₹620 million (excluding land cost) is allocated for the new Bhiwadi facility, currently recorded in Capital Work-in-Progress (CWIP) and Capital advances. This facility will manufacture medium-sized home appliances like air coolers, chimneys, and OTGs.

Future Outlook

The presentation identifies several future growth drivers:

  • Government initiatives: 'Make in India' thrust, BIS norms, and PLI scheme benefits.
  • Market trends: Higher disposable income, rising urbanization, and a focus on convenience.
  • Company strategy: Cost leadership through economies of scale, R&D, automation, and operational excellence.