Tempsens Q1 FY27: Growth accelerates, margins reset as the company invests for scale

Consolidated revenue from operations was INR 1,187.07 million (INR 118.71 crore), up 33.4% year on year. EBITDA was INR 265.95 million (INR 26.60 crore) and profit after tax was INR 162.66 million (INR 16.27 crore).

Product revenue in Q1 FY27 was INR 603 million (INR 60.3 crore) for Temperature Sensing, INR 325 million (INR 32.5 crore) for Specialised Cables, and INR 250 million (INR 25.0 crore) for Electric Heating.

EBITDA margin declined to 22.00% in Q1 FY27 from 25.27% in Q1 FY26. Management attributed this to a higher base gross margin in the prior year quarter and higher employee costs including an Employee Stock Option Plan charge, while gross material margin was stated to be broadly in line with historical levels.

Export revenue increased about 78% year on year to INR 398 million (INR 39.8 crore). Exports were about 34% of product revenue in Q1 FY27 versus about 25% in Q1 FY26, supported by additions of Tempsens Germany and Tempsens Polska and growth in other geographies.

Key projects include Unit 1 sensing brownfield plant (about 50,000 square feet, commissioning expected by Q3 FY28), Unit 6 heating brownfield plant (about 50,000 square feet, commissioning expected by Q1 FY28), Unit 8 cables (commissioning expected by Q2 FY28), and the Tempsens Victura joint venture facility (production expected to commence by Q4 FY27).

Management stated it expects FY27 revenue growth to be in line with the blended growth over the last three years and expects margins to remain broadly similar to the FY26 margin profile, with margin recovery indicated in the next half year within FY27.

Management stated the initial public offering included a fresh issue of INR 950 million (INR 95 crore) and INR 550 million (INR 55 crore) has been applied towards repayment of borrowings. The company expects finance costs to reduce in subsequent periods, with an impact expected to be visible from the coming quarter.