Management Commentary

Mr. Dineshkumar Musalekar, Managing Director & Group CEO, stated that Q1FY27 marked a positive start to the new financial year. The company remains focused on profitable growth, stronger business quality, and building capabilities for sustainable long-term growth despite a mixed global environment.

The industry outlook remains structurally attractive, driven by investments in electrification, grid modernization, renewable energy, and industrial automation. The rapid expansion of AI and data centers is creating new opportunities for energy measurement, monitoring, and power quality solutions.

Priorities for FY27 include profitable growth, better product mix, new product development, deeper customer relationships, strategic geographic expansion (US, Africa, Southeast Asia), and disciplined capital allocation.

Financial Performance Highlights

Consolidated Results (Q1FY27 vs Q1FY26):

  • Revenue from Operations: ₹1,983 Mn (4.2% YoY growth from ₹1,903 Mn)
  • Gross Profit: ₹1,237 Mn (1.9% YoY growth from ₹1,214 Mn)
  • Gross Profit Margin: 62.4% (down 140 bps from 63.8%)
  • Adjusted EBITDA: ₹353 Mn (16.6% YoY growth from ₹303 Mn)
  • Adjusted EBITDA Margin: 17.8% (up 190 bps from 15.9%)
  • Reported EBITDA: ₹333 Mn (17.3% YoY growth from ₹284 Mn)
  • Reported EBITDA Margin: 16.8% (up 190 bps from 14.9%)
  • Profit Before Tax: ₹266 Mn (10.8% YoY growth from ₹240 Mn)
  • Profit After Tax: ₹194 Mn (-1.4% YoY from ₹196 Mn)
  • PAT Margin: 9.8% (down 50 bps from 10.3%)

Standalone Results (Q1FY27 vs Q1FY26):

  • Revenue from Operations: ₹776 Mn (25.6% YoY growth from ₹618 Mn)
  • Gross Profit: ₹409 Mn (20.8% YoY growth from ₹338 Mn)
  • Gross Profit Margin: 52.6% (down 210 bps from 54.8%)
  • Adjusted EBITDA: ₹182 Mn (20.2% YoY growth from ₹152 Mn)
  • Adjusted EBITDA Margin: 23.5% (down 100 bps from 24.5%)
  • Reported EBITDA: ₹178 Mn (24.5% YoY growth from ₹143 Mn)
  • Reported EBITDA Margin: 22.9% (down 20 bps from 23.1%)
  • Profit After Tax: ₹119 Mn (20.2% YoY growth from ₹99 Mn)
  • PAT Margin: 15.3% (down 70 bps from 16.0%)

Segment Performance

Electrical and Electronic Instruments (EEI) Segment:

  • Q1FY27 Revenue: ₹1,540 Mn (34.0% YoY growth from ₹1,149 Mn)
  • Q1FY27 Gross Profit: ₹939 Mn (33.0% YoY growth from ₹706 Mn)
  • Gross Profit Margin: 61.0% (down 50 bps from 61.5%)
  • Adjusted EBITDA: ₹382 Mn (69.1% YoY growth from ₹226 Mn)
  • Adjusted EBITDA Margin: 24.8% (up 520 bps from 19.6%)
  • Reported EBITDA: ₹368 Mn (72.8% YoY growth from ₹213 Mn)
  • Reported EBITDA Margin: 23.9% (up 540 bps from 18.5%)
  • PAT: ₹253 Mn (59.5% YoY growth from ₹158 Mn)
  • PAT Margin: 16.4% (up 260 bps from 13.8%)

High Pressure Die Casting (HPDC) Segment (Lumel Alucast):

  • Q1FY27 Revenue: ₹443 Mn (-41.2% YoY from ₹754 Mn)
  • Q1FY27 Gross Profit: ₹298 Mn (-41.3% YoY from ₹508 Mn)
  • Gross Profit Margin: 67.2% (down 10 bps from 67.3%)
  • Adjusted EBITDA: Loss of ₹28 Mn (down from profit of ₹77 Mn in Q1FY26)
  • Adjusted EBITDA Margin: -6.4% (down from 10.2%)
  • Reported EBITDA: Loss of ₹35 Mn (down from profit of ₹71 Mn in Q1FY26)
  • Reported EBITDA Margin: -7.9% (down from 9.4%)
  • PAT: Loss of ₹59 Mn (down from profit of ₹38 Mn in Q1FY26)
  • PAT Margin: -13.3% (down from 5.0%)

Management expects the HPDC business to remain breakeven at Adjusted EBITDA level for full FY27 following operational restructuring and exit from lower-margin contracts.

Margin Trajectory

Standalone EBITDA margins have remained above 20% for the past 6 quarters. Consolidated EBITDA margins have remained around 15%+ for the past 5 quarters, showing a clear upward trajectory driven by the successful turnaround of the HPDC business and shift towards better product mix in the EEI segment.

Additional Information

  • ESOP Costs & Stock Appreciation Rights: ₹20 Mn consolidated (₹13 Mn in EEI, ₹7 Mn in HPDC)
  • Depreciation: ₹95 Mn consolidated (₹63 Mn in EEI, ₹31 Mn in HPDC)
  • Finance Cost: ₹9 Mn consolidated (₹4 Mn in EEI, ₹5 Mn in HPDC)
  • Tax Expense: ₹72 Mn consolidated (₹72 Mn in EEI, negligible in HPDC)