Shankara Buildpro Q1 FY27 Revenue Up 21% to ₹1,890 Crore; PAT Grows 12%
Shankara Buildpro reported Q1 FY27 revenue of ₹1,890 crore, up 21% YoY. PAT rose 12% to ₹35.8 crore. Steel volumes grew 10% to 2.5 lakh tons, while non-steel revenue increased 15% to ₹165 crore. The company targets 20% steel and 25% non-steel growth for FY27. A stock split is proposed.
The announcement includes significant financial performance metrics (revenue and profit growth), forward-looking guidance, and a strategic corporate action (stock split), all of which are material to investors.
The company reported strong year-on-year growth in revenue and profit, exceeding industry performance in certain segments. Positive outlook for future growth and strategic initiatives like stock split contribute to the positive sentiment.
Shankara Buildpro Limited announced its financial results for the first quarter of FY27, reporting a total revenue from operations of ₹1,890 crore, marking a 21% year-on-year increase. This growth was driven by sustained volume expansion in the steel marketplace and a notable recovery in the non-steel segment.
The company's steel marketplace recorded a volume of 2.5 lakh tons in Q1 FY27, a 10% year-on-year growth, with revenues reaching ₹1,725 crore, up 21% compared to Q1 FY26. Despite a soft industry environment for structural and tubular steel due to geopolitical tensions and a challenging macroeconomy, Shankara Buildpro achieved this volume growth through its multi-brand sourcing and extensive fulfillment network.
The non-steel marketplace demonstrated a healthy improvement, with revenues at ₹165 crore, up 15% year-on-year. This segment's performance was boosted by a 32% growth in fittings and sanitaryware, and approximately 40% growth in accessories and electricals. The company anticipates continued stability and growth in most non-steel verticals.
Profitability also saw an increase, with EBITDA at ₹62 crore, up 17% year-on-year, and EBITDA margin at 3.26%. Profit After Tax (PAT) stood at ₹35.8 crore, a 12% year-on-year increase. The company maintained a strong balance sheet with Return on Capital Employed (ROCE) at 35% and working capital at 27 days.
Shankara Buildpro is on track to meet its FY27 steel volume target of 1.2 million tons. The management expressed confidence in achieving 20% volume growth in steel and 25% in non-steel for the full fiscal year. Furthermore, the company's Board has approved a stock split proposal, subdividing each equity share of face value ₹10 into five equity shares of face value ₹2, subject to shareholder and regulatory approvals.
The company added three new stores and 34 customer touchpoints across 10 states in Q1 FY27 and plans to add approximately five more fulfillment centers in the coming quarters. Shankara Buildpro aims for a medium-term target of around 4% EBITDA margin and is exploring value-added products in steel and expanding its private label offerings in non-steel segments. Acquisitions are also being considered as a potential avenue for growth.
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Shankara Buildpro Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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