Atlanta Electricals' margin drops 7.61 points sequentially
Year-on-year margin improved 4.09 percentage points as revenue growth outpaced expense growth, while higher tax and depreciation limited profit conversion.
Filed 21 Jul 2026, 12:33 IST · Atlanta Electricals Ltd (ATLANTAELE)
Key takeaways
- Consolidated operating margin expanded 4.09 percentage points YoY to 17.93%, as revenue grew faster than expenses.
- Sequentially, revenue fell 37.62% and operating margin narrowed 7.61 percentage points, with expenses declining more slowly than revenue.
- Consolidated net profit rose 50.42% YoY to Rs 46.84 cr, while other income contributed only 3.65% of pre-tax profit.
YoY growth remained strong, but Q4 momentum reversed
Atlanta Electricals reported consolidated revenue growth of 47.99% YoY, while operating profit increased 91.72%. The 4.09-percentage-point expansion in operating margin reflects expenses growing 40.96%, slower than revenue. On a sequential basis, however, revenue fell 37.62% and net profit declined 54.16% from Q4FY26.
Sequential margin pressure came from slower cost reduction
Expenses fell 31.25% QoQ, less than the 37.62% decline in revenue, so operating margin narrowed 7.61 percentage points. Lower interest expense, down 64.25%, partly offset the operating pressure, but the tax rate rose 3.88 percentage points to 26.33%. Other income was 3.65% of pre-tax profit, limiting its contribution to reported earnings quality.
Margin stayed above the reported Industrials peer median
The company's 17.93% operating margin was 10.48 percentage points above the 7.45% median for 11 Industrials peers that had reported the quarter. The quarterly trend remains uneven: margin moved from -0.59% in Q3FY26 to 25.54% in Q4FY26 before easing to 17.93% in Q1FY27. This is a sequential decline, but not a third consecutive quarterly decline.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹466 cr | ₹748 cr | -37.62% | +47.99% |
| Other income | ₹2 cr | ₹8 cr | -69.27% | -3.73% |
| Expenses | ₹383 cr | ₹557 cr | -31.25% | +40.96% |
| Operating profit | ₹84 cr | ₹191 cr | -56.21% | +91.72% |
| Operating margin (%) | 17.93% | 25.54% | — | — |
| Interest | ₹6 cr | ₹16 cr | -64.25% | -16.89% |
| Depreciation | ₹10 cr | ₹9 cr | +9.28% | +331.06% |
| Profit before tax | ₹64 cr | ₹132 cr | -51.75% | +51.49% |
| Tax | ₹17 cr | ₹30 cr | -43.41% | +54.57% |
| Net profit | ₹47 cr | ₹102 cr | -54.16% | +50.42% |
| EPS (₹) | ₹6.09 | ₹13.29 | -54.18% | -65.00% |
Operating margin of 17.93% compares with a Industrials sector median of 7.45% across 11 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 17.93% after the 7.61-percentage-point QoQ decline.
- Whether expenses continue to grow more slowly than revenue on a YoY basis, against 40.96% expense growth and 47.99% revenue growth.
- Whether the tax rate moves down from 26.33% after rising 3.88 percentage points QoQ.