Centum Electronics Limited Earnings Summary — Q1 FY2027
Centum Electronics Posts ₹1,055 Mn Net Profit Driven by ₹812 Mn Deconsolidation Gain Following Overseas Business Transfer
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 40.0% sequentially in Q1 FY2027.
- Revenue of ₹204 Cr is 14.4% higher year-on-year.
- Revenue has compounded at -15.3% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹106 Cr is 2239.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 390.0% annualised across the period.
- Operating margin stands at 11.5% in Q1 FY2027.
- Operating margin compressed by 423 bps year-on-year.
- Over the last two years operating margin has expanded by 521 bps.
- PBT margin is 54.0%.
- Expenses grew 20.1% against revenue growth of 14.4%.
- Operating profit of ₹24 Cr is 16.3% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 49/100 (Moderate) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 204 | 340 | 237 | 277 | 179 | 267 | 273 | 260 | 246 | 297 |
| Expenses | Stable | 181 | 292 | 205 | 257 | 150 | 221 | 246 | 240 | 230 | 279 |
| Operating Profit | Improving | 24 | 49 | 32 | 20 | 28 | 46 | 27 | 20 | 16 | 18 |
| Operating Margin | Accelerating | 11.5% | 14.3% | 13.5% | 7.3% | 15.8% | 17.1% | 9.7% | 7.8% | 6.3% | 6.1% |
| Other Income | Volatile | 97 | -26 | -92 | 7 | -10 | -5 | -26 | 1 | 1 | -1 |
| Interest | Volatile | 4 | 5 | 4 | 8 | 3 | 6 | 8 | 8 | 8 | 10 |
| Depreciation | Volatile | 6 | 5 | 5 | 10 | 4 | 5 | 9 | 11 | 12 | 12 |
| Profit Before Tax | Volatile | 110 | 13 | -69 | 9 | 10 | 30 | -16 | 3 | -3 | -5 |
| Tax | Volatile | 5 | 11 | -7 | 5 | 6 | 8 | 3 | 3 | 1 | 2 |
| Net Profit | Volatile | 106 | 2 | -62 | 4 | 5 | 22 | -19 | -0 | -4 | -7 |
| Net Margin | Volatile | 51.7% | 0.5% | -26.2% | 1.5% | 2.5% | 8.1% | -7.1% | -0.1% | -1.6% | -2.3% |
Key Takeaways
- Consolidated net profit surged to ₹1,055.00 million in Q1 FY2027 from ₹45.11 million in Q1 FY2026, primarily driven by a one-off profit on deconsolidation of Centum T&S Group S.A. of ₹812.33 million.
- Continuing operations revenue grew 14.35% YoY to ₹2,041.49 million, though it declined 40.03% sequentially following strong Q4 dispatches.
- Continuing operations profit after tax stood at ₹112.31 million, down 36.86% YoY from ₹177.86 million, impacted by higher raw material costs and interest expenses.
- The Commercial Court of Lyon approved the transfer of substantially all operating business and employees of Centum T&S Group S.A. to bidders on June 4, 2026, terminating the group's operational exposure.
- Proceedings in France were subsequently converted into judicial liquidation (liquidation judiciaire) on July 2, 2026, effectively sealing the restructuring of loss-making French operations.
- On a standalone basis, Centum recovered ₹24.17 million of written-off receivables from Canadian subsidiaries and reversed ₹3.15 million in liabilities, reported as exceptional income.
Management Guidance
Management is focusing operational bandwidth and capital allocation on its core Indian ESDM design and manufacturing capabilities, having fully exited the drag of European and Canadian subsidiaries through court-supervised transfers and liquidations.
Sentiment Shift
Improving
The formal exit and deconsolidation of the structurally loss-making European subsidiary eliminates ongoing bottom-line drag and clears balance sheet uncertainty, despite lower operating margins in continuing operations.
Outlook
With European operating liabilities resolved and overseas subsidiaries deconsolidated, Centum enters the rest of FY2027 with a cleaner balance sheet focused on domestic aerospace, defence, and industrial electronics growth.
From the Annual Report (Key Quotes)
“During the quarter ended June 30, 2026, the court of Lyon approved the transfer of substantially all of the operating business together with the employees of Centum T&S Group Société Anonyme (S.A.) to successful bidders.”
“The Holding Company based on their assessment as per Ind AS 110 has discontinued to consolidate above mentioned subsidiaries w.e.f. June 04, 2026.”
“Includes profit on deconsolidation of Centum T&S Group Societe Anonyme (S.A.) and its underlying overseas subsidiaries amounting to Rs. 812.33 million during the quarter ended June 30, 2026.”
Official Quarterly Documents
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This summary is AI-generated from Centum Electronics Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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