SIEL's Revenue Growth Masks a Sharp Profit Squeeze
Superior Industrial Enterprises posted a 9% revenue gain but saw profit fall 26% year-on-year, highlighting margin pressure.
Superior Industrial Enterprises reported a mixed Q1 FY27, with revenue climbing 8.9% but profit declining 26% from the same quarter last year. The net profit margin compressed significantly.
Superior Industrial Enterprises (SIEL) delivered a quarter of contrasting fortunes. While revenue showed a healthy increase, profitability took a significant hit, pointing to a squeeze on margins.
Revenue for the quarter ended June 2026 rose 8.9% year-on-year to ₹19.63 crore. However, profit after tax (PAT) fell 26% to ₹1.14 crore. This divergence pushed the net profit margin down to 5.8%, a substantial drop of 270 basis points from the 8.5% margin in Q1 FY26. The sequential picture is more dramatic, with revenue more than doubling from a weak Q4 and profit surging from a very low base, but this follows an exceptionally soft preceding quarter.
A look at the last five quarters reveals the volatile trajectory of the packaging firm's earnings.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 19.63YoY +8.9% | 9.71 | 18.03 |
| Profit (₹ Cr) | 1.14YoY -26% | 0.04 | 1.54 |
| Net Profit Margin (%) | 5.8YoY -32% | 0.4 | 8.5 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 3.3%, well below the latest quarter's 5.8%.
- The company maintains a very strong balance sheet with minimal debt (Debt-to-Equity of 0.06) and a healthy interest coverage ratio of 12.87x.
- The stock trades at a trailing P/E of 10.7, a significant discount to the industry average of 23.3.
Despite the recent quarterly rebound, the year-on-year decline in profit and margin suggests underlying cost pressures. The coming quarters will be crucial for SIEL to demonstrate it can translate its revenue momentum into sustained profitability.
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