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 revenue grew +47.99% YoY, but fell -37.62% sequentially.
- Operating margin improved 1.05 percentage points YoY to 16.53%, but narrowed 3.47 percentage points QoQ as expenses fell less than revenue.
- The stock fell -4.77% on the results day and was down -11.75% at t+5, versus a 3.91% median absolute move after the past four results.
Price around the results
Year-on-year growth stayed strong, but quarterly momentum weakened
Atlanta Electricals reported consolidated revenue growth of +47.99% YoY, with operating profit up +58.09% and net profit up +50.42%. Sequentially, revenue fell -37.62%, operating profit declined -48.45% and net profit fell -54.16%, marking a much weaker quarter than Q4FY26. Other income contributed only 3.65% of profit before tax, so reported profit was not materially dependent on that item.
Lower sequential utilisation of costs pulled down the margin
Year on year, expenses grew +46.14%, slower than revenue growth of +47.99%, lifting operating margin by 1.05 percentage points. On a sequential basis, expenses fell -34.92%, less than the -37.62% revenue decline, which narrowed operating margin by 3.47 percentage points. Interest expense fell -64.25% QoQ, but the tax rate rose 3.88 percentage points, limiting the benefit below operating profit.
Margin remains above peers after the first decline in four quarters
The 16.53% operating margin was 1.89 percentage points above the 14.64% median for 93 reported Industrials peers. The margin had risen from 15.48% in Q1FY26 to 20.00% in Q4FY26 before falling in Q1FY27, ending three consecutive quarters of expansion.
The market reaction was worse than the stock's usual post-result move
The stock fell -4.77% on the results day, was down -7.12% at t+1 and reached -11.75% at t+5; trading volume was 7.46 times the reference level on the results day. After the previous four results, the stock rose three times and fell once, with a median absolute move of 3.91%, making this reaction larger and notably weaker than its usual response.
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 | ₹7 cr | -68.86% | -3.73% |
| Expenses | ₹389 cr | ₹598 cr | -34.92% | +46.14% |
| Operating profit | ₹77 cr | ₹150 cr | -48.45% | +58.09% |
| Operating margin (%) | 16.53% | 20.00% | — | — |
| 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 16.53% compares with a Industrials sector median of 14.64% across 93 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.77% | -4.56% |
| Next session | -7.12% | — |
| 5 sessions | -11.75% | -10.71% |
Volume on the results session was 7.46× its 20-day average.
What to watch
- Next quarter's consolidated revenue versus Rs 466.33 cr.
- Whether operating margin recovers from 16.53% toward the Q4FY26 level of 20.00%.
- Whether the tax rate moves from 26.33% after its 3.88-percentage-point sequential increase.