Creative Newtech Q1 FY27 Profit Rises 33% as Revenue Grows

Q1 FY27 results show year-on-year expansion

Creative Newtech Ltd reported a mixed set of financial results for the quarter ended June 30, 2026, the first quarter of FY27. Consolidated net profit rose 33.01% year-on-year to ₹13.54 crore. Revenue increased 20.82% from the corresponding quarter of the previous year to ₹476.09 crore. The figures indicate that the company expanded its business compared with Q1 FY26. Its operating margin improved to 5.09% from 3.04% a year earlier, pointing to better cost management during the quarter. However, the quarterly comparison was weaker, with both revenue and profit falling from the preceding three-month period. The results therefore combine stronger annual growth with a softer sequential performance. Investors will now look to the September-quarter numbers for clarity on whether the sequential decline was temporary.

Consolidated income and EBITDA details

The company also reported unaudited consolidated total income of ₹476.84 crore for Q1 FY27. Consolidated EBITDA stood at ₹24.89 crore, with the company stating that EBITDA increased 64.73% year-on-year. Profit after tax was ₹13.54 crore, up 32.89% year-on-year in the consolidated results announcement. The difference between the reported revenue figure of ₹476.09 crore and total income of ₹476.84 crore reflects the use of different disclosed line items. Both figures are for the same June 2026 quarter and should not be treated as interchangeable. The company said its Market Entry and Brand businesses made strong contributions to consolidated income. The available disclosures do not provide a segment-wise revenue or profit breakup. As a result, the precise contribution of each business to quarterly earnings cannot be quantified from the information provided.

Standalone performance remained lower than consolidated income

On a standalone basis, Creative Newtech reported total income of ₹448.29 crore for the June 2026 quarter. Standalone EBITDA was ₹20.00 crore. Consolidated income was therefore higher than standalone income, consistent with the inclusion of group operations in the consolidated accounts. A separate report said standalone net profit was ₹9.01 crore for the quarter, compared with ₹5.31 crore in the year-earlier period. That report described the standalone profit increase as 69.68% year-on-year. The consolidated PAT of ₹13.54 crore remains the headline group-level profitability figure reported for Q1 FY27. Readers should distinguish between standalone and consolidated results when comparing company disclosures.

Sequential decline remains a key concern

Despite the annual improvement, revenue fell 35.73% from the previous quarter. Net profit declined 23.89% on a quarter-on-quarter basis. The available information does not identify a specific cause for the sequential fall. It also does not indicate whether the change resulted from seasonality, product mix, demand conditions, or other operating factors. The quarterly decline follows a strong Q4 FY26, when revenue from operations was reported at ₹740.01 crore. Q4 FY26 revenue from operations was already down 18.84% from ₹911.79 crore in Q3 FY26. The June-quarter movement should therefore be assessed alongside the company’s historically variable quarterly revenue pattern.

Key Q1 FY27 financial figures

FY26 provides context for the current quarter

Creative Newtech’s FY26 revenue from operations was ₹2,699.77 crore, up 52.14% from ₹1,774.48 crore in FY25. The company reported Q4 FY26 revenue from operations of ₹740.01 crore, up 83.63% year-on-year from ₹402.99 crore. Q4 FY26 total income was ₹740.44 crore, compared with ₹408.72 crore in Q4 FY25. These figures show that the company entered FY27 after a year of substantial revenue growth. At the same time, Q4 FY26 revenue was lower than the preceding quarter, illustrating that sequential volatility had already appeared before the June quarter. Annual net profit increased to ₹34.35 crore in FY26 from ₹25.56 crore in FY25. The June-quarter result continues the company’s year-on-year profit expansion, although at a more measured pace than the standalone comparison.

Margin targets and business outlook disclosures

Creative Newtech has previously indicated that EBITDA margins in its brand business were around 15% to 16%. It has stated a target to grow this margin to 21% over the next one to two years. The company has also indicated an aim to reach a PAT margin of about 4.5% to 5% over the next one to two years. These are management targets rather than reported financial outcomes. The Q1 FY27 operating margin of 5.09% was above the 3.04% reported for the year-earlier quarter. However, the supplied information does not provide a directly comparable PAT margin for Q1 FY27. Any assessment of progress against the company’s margin objectives will require future reported results.

Honeywell business expectations

The company has indicated that its Honeywell business could reach ₹365 crore to ₹370 crore by year-end. It also stated that this could rise to ₹390 crore to ₹400 crore if market conditions are favourable. These figures are expectations and not recognised revenue for Q1 FY27. The disclosure offers context on a business line that management sees as relevant to its growth plans. But actual performance will depend on market conditions and execution over the remaining period. No quarterly Honeywell revenue figure was included in the supplied Q1 information. Investors will need to rely on future company disclosures for confirmation of progress against this expectation.

Board meeting scheduled for October 28

Creative Newtech informed BSE on October 24, 2026, that its board meeting is scheduled for October 28, 2026. The meeting is set to begin at 11:30 AM IST at the company’s registered office and through audio-visual means. The board will consider and approve unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The announcement makes the upcoming Q2 FY27 results the next formal financial update for shareholders. Those results will provide a comparison with the June quarter and an update on first-half performance. They may also offer further detail on the company’s revenue trajectory, profitability and business segments.

Market relevance and conclusion

Creative Newtech’s Q1 FY27 figures show clear year-on-year progress in revenue, PAT and operating margin. Consolidated PAT of ₹13.54 crore and revenue of ₹476.09 crore demonstrate growth from the corresponding quarter a year earlier. Yet the 35.73% sequential revenue decline and 23.89% fall in net profit are important considerations when assessing the pace of business in FY27. The contrast between annual and sequential metrics makes the September-quarter update particularly relevant. The October 28 board meeting is scheduled to consider the unaudited Q2 and half-year results. Until those results are released, the reported Q1 figures remain the latest confirmed view of Creative Newtech’s FY27 operating performance.