Schneider Electric Infrastructure (SCHNEIDER) Q1 26/27 earnings summary

Executive summary

• Achieved highest-ever quarterly order intake at INR 915 crore in Q1 FY27, with strong demand from data centers and semiconductors and double-digit sequential growth.

• Sales grew 5% year-over-year to INR 651 crore, with a strong backlog growth of 33% entering Q2.

• Profitability was impacted by commodity price volatility, delayed cost pass-through, and negative operating leverage.

• Company maintains a focus on technology leadership, customer differentiation, and cost competitiveness, with strategic wins in semiconductors, data centers, renewables, cement, and airport infrastructure.

• Board approved unaudited Q1 FY27 results, with key management changes including new internal auditor, whole-time director, and non-executive director appointments.

Financial highlights

• Orders reached INR 915 crore, up 0.5% year-over-year; sales at INR 651 crore, up 4.8% year-over-year.

• EBIT for the quarter was INR 32.1 crore, down 51.8% year-over-year; PAT at INR 12.4 crore, down 69.8% year-over-year.

• Gross/material margin declined to 36.5% from 38.8% year-over-year, impacted by commodity inflation and legacy orders without price variation clauses.

• Export revenue contributed 10-12% of total revenue, with expectations for growth as new capacity ramps up.

• Total expenses increased to ₹64,128 lakh in Q1 FY27 from ₹56,946 lakh in Q1 FY26.

Outlook and guidance

• Management expects Q2 and subsequent quarters to outperform Q1, supported by a robust order backlog and healthy demand pipeline.

• Pricing actions have been initiated to mitigate commodity cost pressures, with further improvements anticipated as new contracts include price variation clauses.

• Expansion projects in Baroda and Kolkata are on track, with additional capacity expected in the second half of the year.

• Long-term demand outlook remains robust, supported by India's infrastructure growth and digitalization trends.

• No explicit forward-looking guidance provided; management continues to monitor regulatory changes and their financial impact.