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Subros shares fell more than 4% in morning trade on Monday, August 10, after the auto components company reported a decline in EBITDA and a sharp contraction in operating margin for the first quarter of FY27, despite healthy revenue growth.
As of around 10:13 AM, Subros shares were trading under pressure following the company's Q1 earnings.
The stock opened at ₹805.05, compared with its previous close of ₹828.70, and fell to an intraday low of ₹788.20.
At the day's low, Subros shares were down approximately 4.9% from the previous closing price.
Subros reported a consolidated net profit of ₹41.5 crore for Q1 FY27, compared with ₹40.8 crore in the corresponding quarter last year. This represents modest growth of around 1.7% year-on-year. Revenue from operations, however, recorded stronger growth, increasing 17.5% YoY to ₹1,032 crore, compared with ₹878 crore in Q1 FY26.
The numbers showed that while the company's top line expanded at a double-digit pace, the improvement did not translate into comparable profit growth. Subros' operating performance came under pressure during the quarter.
EBITDA declined 1.4% year-on-year to ₹80.8 crore, compared with ₹82 crore in the year-ago period. More importantly, the company's EBITDA margin contracted to 7.8% from 9.3% in the corresponding quarter last year. That represents a margin contraction of around 150 basis points YoY.
The decline in margins despite strong revenue growth emerged as one of the key weak points in the quarterly earnings.
Subros Q1 FY27 results at a glance
Net profit: ₹41.5 crore vs ₹40.8 crore YoY
Net profit growth: Up 1.7%
Revenue: ₹1,032 crore vs ₹878 crore YoY
Revenue growth: Up 17.5%
EBITDA: ₹80.8 crore vs ₹82 crore YoY
EBITDA growth: Down 1.4%
EBITDA margin: 7.8% vs 9.3% YoY
The quarter therefore presented a mixed earnings picture, with strong sales growth offset by weaker operating profitability.
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