SERVICES · NSE/BSE: KERNEX

Kernex Microsystems (India) Limited Earnings Summary — Q1 FY2027

Sentiment: Positive

AI-generated summary

Generated 2026-10-21

Generated using: Official Earnings Press Release

Business Intelligence Report

Kernex Microsystems Reports Spectacular Q1 FY27 Growth with Revenue Up 800% YoY and Net Profit Surging to ₹109.85 Cr

Quarterly Business Intelligence

Q1 FY2027

Financials from Financial Intelligence · data as of 2026-06-30

Revenue

₹504 Cr

QoQ +97.8%YoY +800.4%

Net Profit

₹110 Cr

QoQ +60.9%YoY +1372.5%

Operating Profit

₹163 Cr

QoQ +54.9%YoY +1194.3%

Operating Margin

32.3%

QoQ -896 bpsYoY +984 bps

AI Quarterly Scorecard™

/ 100

Strong

Revenue Momentum98

Profit Growth98

Margin Expansion100

Growth Consistency80

Operating Efficiency67

Financial Stability35

Computed deterministically from the last 10 reported quarters.

Quarterly Business Momentum

Revenue & Growth

Revenue has increased for 4 consecutive quarters.
Revenue of ₹504 Cr is 800.4% higher year-on-year.
Revenue has compounded at 500.8% annualised over the last 10 quarters.
Revenue is at its highest level in 10 quarters.

Profitability

Net profit has reached its highest level in 10 quarters.
Net profit of ₹110 Cr is 1372.5% above the same quarter last year.
Profit growth is outpacing revenue growth, pointing to positive operating leverage.
Net profit has compounded at 450.9% annualised across the period.

Margins

Operating margin stands at 32.3% in Q1 FY2027.
Operating margin expanded by 984 bps year-on-year.
Over the last two years operating margin has expanded by 1542 bps.
PBT margin is 29.4%.

Operating Efficiency

Expense growth of 686.1% remained below revenue growth of 800.4%.
Operating profit of ₹163 Cr is 1194.3% higher year-on-year.
Operating leverage continues to improve.

Overall Momentum

6 of the last 6 measured quarters delivered year-on-year revenue growth.
Overall quarterly business momentum scores 80/100 (Strong) 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	Accelerating	504	255	73	47	56	83	37	41	29	9
Expenses	Accelerating	341	149	56	33	43	66	28	31	24	21
Operating Profit	Strong Uptrend	163	105	17	14	13	17	9	10	5	-12
Operating Margin	Improving	32.3%	41.3%	23.1%	30.3%	22.5%	20.6%	23.3%	24.9%	16.9%	-138.6%
Other Income	Improving	0	1	0	0	0	1	0	0	0	0
Interest	Strong Uptrend	13	12	9	5	3	2	1	3	1	1
Depreciation	Accelerating	2	2	2	1	1	1	1	1	1	1
Profit Before Tax	Volatile	148	92	6	9	10	15	7	7	3	-13
Tax	Volatile	38	24	0	3	2	-17	-0	-0	-0	-1
Net Profit	Accelerating	110	68	6	7	7	33	7	7	4	-13
Net Margin	Volatile	21.8%	26.8%	8.3%	13.9%	13.3%	39.2%	19.5%	16.6%	12.6%	-141.6%

Source: Financial Intelligence (Structured Quarterly Data)•Latest Quarter: Q1 FY2027•Figures in ₹ Crore • Margins in %•Automatically updated from Financial Intelligence · 2026-06-30

Key Takeaways

Consolidated revenue from operations surged 800.38% YoY to ₹503.58 Cr (₹50,358.23 Lakhs), nearly doubling QoQ from ₹254.58 Cr.
Net profit after tax increased nearly 15-fold YoY to ₹109.85 Cr (₹10,984.57 Lakhs), reflecting tremendous operational leverage on Kavach project rollouts.
Robust order book visibility: Aggregate outstanding order book stood at ₹3,641 Cr (inclusive of GST) as of the reporting date.
Supply execution for the primary Chittaranjan Locomotive Works (CLW) contract reached 45% completion as of August 13, 2026.
Other expenses included a conservative provision of ₹30.05 Cr towards warranty obligations for KAVACH and signalling systems delivered under safety contracts.
Statutory auditors reiterated an Emphasis of Matter concerning legacy trade receivables of ₹4.23 Cr (with ECL provision of ₹3.35 Cr) and disputed bank guarantees of ₹2.65 Cr.

Management Guidance

Management affirmed strong project execution momentum, noting that 45% of supplies against its anchor CLW contract have been fulfilled while continuing the ramp-up across Indian Railways' Kavach safety infrastructure rollout.

Sentiment Shift

Improving

Quarterly operational results demonstrated explosive top-line and earnings acceleration driven by rapid execution of the ₹3,641 Cr order book, despite margin compression QoQ caused by warranty provisioning.

hyper-growth

execution-driven

turnaround

Outlook

The company is positioned for strong near-term execution backed by a ₹3,641 Cr order backlog and accelerated Kavach deployment across Indian Railways, though working capital management and cash flow realization remain critical watchpoints.

From the Annual Report (Key Quotes)

“As at the reporting date, the Company's aggregate outstanding order book is ₹ 3641 Crores (Including GST), with CLW being the major order under execution against which supplies have been completed to the extent of 45% as on date of 13-08-2026.”

“During this Quarter, the Company has recognised a provision of ₹30.05 Crore towards warranty obligations on KAVACH and signalling systems delivered under its railway safety contracts.”

Official Quarterly Documents

Earnings Press Release

Official quarterly earnings release published by the company.

Download

Earnings Call Transcript

Management discussion and analyst Q&A.

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This summary is AI-generated from Kernex Microsystems (India) Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.