Saatvik’s 6.62% margin trails peers as other income exceeds PBT
Interest of Rs 21.73 cr further reduced earnings, while management outlined a 3.6 GW capacity addition targeted for FY28.
Filed 14 Aug 2026, 15:38 IST · after market close · Saatvik Green Energy Ltd (SAATVIKGL)
Key takeaways
- Saatvik reported consolidated Q1FY27 operating margin of 6.62%, 7.80 percentage points below the Industrials peer median.
- Other income of Rs 8.72 cr exceeded profit before tax of Rs 7.41 cr, raising a clear profit-quality concern.
- Management said Phase 2 would add 3.6 GW of cell capacity, taking total cell capacity to 6 GW.
Price around the results
Interest and other income shaped Q1FY27 earnings
Consolidated Q1FY27 earnings were squeezed between a 6.62% operating margin and financing costs: interest was Rs 21.73 cr against operating profit of Rs 33.83 cr, while depreciation added Rs 13.41 cr. Other income of Rs 8.72 cr exceeded profit before tax of Rs 7.41 cr, so the pre-tax result was not supported solely by operations. At a 27.60% tax rate, net profit was Rs 5.36 cr and EPS was Rs 0.43.
Operating margin was well below the Industrials peer median
Saatvik’s 6.62% operating margin was 7.80 percentage points below the 14.42% median for 140 Industrials peers that had reported the quarter. The company ranked 20th from the bottom on this measure. Expenses of Rs 477.18 cr against revenue of Rs 511.01 cr left limited operating profit before interest and depreciation.
Management outlined a larger manufacturing footprint
Management said Phase 2 adds 3.6 GW of cell manufacturing capacity, taking total cell capacity to 6 GW. The company said site activities are scheduled to start by the end of Q2 FY27, with completion targeted for FY28. The presentation also said module capacity is planned to rise from 4.8 GW to 8.8 GW by FY27 and encapsulant capacity to 5 GW from 2 GW. Management identified the industry’s heavy reliance on imported cells as a key sector issue.
Results were filed after market close
The consolidated results were filed after market close on 14 Aug 2026. Any price response belongs to subsequent trading rather than the filing session.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹511 cr |
| Other income | ₹9 cr |
| Expenses | ₹477 cr |
| Operating profit | ₹34 cr |
| Operating margin (%) | 6.62% |
| Interest | ₹22 cr |
| Depreciation | ₹13 cr |
| Profit before tax | ₹7 cr |
| Tax | ₹2 cr |
| Net profit | ₹5 cr |
| EPS (₹) | ₹0.43 |
Operating margin of 6.62% compares with a Industrials sector median of 14.42% across 140 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Phase 2 adds 3.6 GW of cell manufacturing capacity, taking total cell capacity to 6 GW.
- Phase 2 site activities are scheduled to start by the end of Q2 FY27, with completion targeted for FY28.
- The capacity outlook includes 5 GW of encapsulant capacity from 2 GW existing and 3 GW planned.
- Module capacity is planned to increase from 4.8 GW to 8.8 GW by FY27.
Problems & risks
- The industry has heavy reliance on imported cells.
What to watch
- Whether operating margin moves above 6.62% and toward the 14.42% Industrials peer median.
- Whether other income remains below profit before tax, rather than Rs 8.72 cr against Rs 7.41 cr.
- Whether the company reports Phase 2 site activity by the end of Q2 FY27, as management said.