Shanthi Gears Q1 FY27 Profit Falls 57% Before Q2

Q1 performance sets the context for Q2 results

Shanthi Gears Ltd will report its unaudited standalone financial results for the quarter and half year ended September 30, 2026, on October 26, 2026. The update follows a weak start to FY27, when revenue, operating profit and net profit declined from both the previous quarter and the year-earlier period. The company reported revenue from operations of ₹115.49 crore for the June 2026 quarter. Net profit stood at ₹9.85 crore. The Q1 result was released on July 29, 2026. The company’s board meeting on October 26 is also scheduled to approve the Q2 and H1 financial results. Its trading window has been closed until 48 hours after the results declaration.

Revenue declined year on year and sequentially

Revenue from operations in Q1 FY27 fell 14.38% year on year from ₹134.89 crore in Q1 FY26 to ₹115.49 crore. On a sequential basis, net sales were down 14.52% from ₹135.10 crore in the March 2026 quarter. The reported June-quarter revenue was the lowest quarterly sales figure in more than two years, according to the supplied results summary. A separate disclosure put total income for the quarter at ₹119.65 crore, which includes items beyond revenue from operations. The distinction is relevant because the reported revenue and total-income figures are not the same measure. The company’s quarterly revenue had reached ₹158 crore in December 2024 before moderating through subsequent periods. Revenue was ₹135 crore in March 2026 and ₹115 crore in June 2026 in the quarterly table.

Profit fell faster than sales

Standalone net profit dropped 56.59% year on year to ₹9.85 crore in Q1 FY27, compared with ₹22.69 crore a year earlier. Profit was also down 39.46% from ₹16.27 crore in the preceding quarter. The decline in profit was substantially steeper than the revenue contraction. Reported net profit of ₹9.85 crore is equivalent to ₹98.5 million. First-quarter earnings per share were reported at ₹1.28, compared with ₹2.96 in the corresponding quarter of the prior year. The quarterly financial table also shows EPS rounded at ₹1.3 for June 2026. These figures reflect a material reduction in earnings during the quarter.

Margins compressed during the June quarter

Operating performance weakened as the lower revenue base was not matched by a proportional fall in expenses. Operating profit was ₹15 crore in the June 2026 quarterly table, compared with ₹24 crore in March 2026 and ₹31 crore in June 2025. Operating margin declined to 13.1% in June 2026. That compares with 17.7% in March 2026 and 22.6% in June 2025. Net profit margin was 8.5% in Q1 FY27, against 12.0% in the preceding quarter and 16.8% a year earlier. The supplied results commentary attributed the pressure to operating deleverage, with total expenses falling less sharply than revenue. Total expenses were reported at ₹105.48 crore in the June quarter.

Key Q1 FY27 financial figures

Expenses and operating leverage were important factors

The financial data show that expenses were ₹100 crore in June 2026, based on rounded figures in the quarterly table, compared with ₹111 crore in March 2026. While expenses declined sequentially, the reduction was less than the fall in revenue, which affected operating profitability. The commentary accompanying the results said material and employee costs were largely sticky against a lower topline. As a result, a reduction in volumes had a larger effect on profit than on sales. Gross profit was reported at ₹10 crore, down 47.24% sequentially and 62.31% year on year. The available data therefore point to pressure across both gross and operating profitability during the quarter.

Order book offers an operational data point

The company’s Q1 FY27 update referred to an order book of ₹378 crore. The supplied information does not provide a comparable earlier order-book figure or a timeline for execution. It also does not specify how the order book may translate into revenue in the following quarters. Investors will therefore look to the October 26 board meeting for any further operational commentary accompanying the Q2 and half-year numbers. The announced meeting is specifically for approval of unaudited standalone results. No forward financial guidance has been provided in the supplied material.

Quarterly trend shows a prolonged revenue slowdown

The June 2026 result followed several quarters of softer revenue growth. Revenue growth was negative 2.8% year on year in June 2025, negative 14.9% in September 2025, negative 25.8% in December 2025 and negative 11.8% in March 2026. The June 2026 quarter extended that sequence with a 14.4% year-on-year decline. Operating margin also moved from 22.6% in June 2025 to 20.1% in September 2025, 19.7% in December 2025, 17.7% in March 2026 and 13.1% in June 2026. This pattern provides the backdrop for the upcoming Q2 announcement.

What the October 26 board meeting covers

Shanthi Gears has stated that its board will meet on Monday, October 26, 2026. The agenda is to approve unaudited standalone results for the quarter and half year ended September 30, 2026. The announcement will provide the next reported measure of whether the June-quarter revenue and margin pressure continued into Q2. It will also update the company’s reported earnings trend after Q1’s lower sales and profit. The company is listed on the BSE under code 522034 and on the NSE under the symbol SHANTIGEAR. Until the results are released, the disclosed Q1 figures and the ₹378 crore order book remain the principal operational reference points available in the supplied information.

Conclusion

Shanthi Gears began FY27 with revenue of ₹115.49 crore and net profit of ₹9.85 crore, both lower than the prior quarter and the year-earlier period. The sharper decline in profit reflected significant margin compression as expenses did not fall in line with revenue. The October 26 board meeting will consider Q2 and first-half results, providing the next official update on sales, margins and earnings.