Q1 FY27 Earnings: Revenue up 10%, but margins and profit under pressure

The Hi-Tech Gears posted Q1 FY27 consolidated revenue of INR 2,377 Mn, up 10.3% YoY, but PAT fell 20% to INR 48 Mn. EBITDA margin slipped 110 bps to 11.06%. Standalone PAT dropped 34% to INR 62 Mn. Management cited cost absorption from a transformation programme, inflationary pressures on fuel, gas shortages, and government-mandated wage hikes as reasons for margin pressure. Benefits from machine refurbishment are expected to accrue in coming quarters. New business wins of about INR 1,172 Mn annualized announced, including entry into Mahindra SUV segment and EV orders from Hero MotoCorp and Dana. Net debt to equity ratio is a healthy 0.05x.