Vedavaag Systems Sees Sharp Revenue Drop but Profit Rebounds from Low Base
The IT services firm reported a steep 28.9% yearly revenue decline, though profit jumped sequentially from a weak prior quarter.
Vedavaag Systems' Q1 FY27 results show a significant contraction in revenue year-on-year. However, profit recovered strongly from the previous quarter's low base.
Vedavaag Systems reported a mixed set of earnings for the first quarter of FY27. While revenue fell sharply compared to last year, profit staged a strong sequential rebound from an exceptionally weak base in the prior quarter, offering a glimmer of operational recovery.
The company's revenue for the quarter ended June 2026 stood at ₹22.12 crore, a 28.9% decline from the same period last year and a 55.3% drop from the previous quarter. Profit after tax, however, rose to ₹1.10 crore, marking a 450% jump from the March 2026 quarter, though it remains nearly 49% lower year-on-year. This resulted in a net profit margin of 5.0%, a significant recovery from 0.4% last quarter but still below the 6.9% margin from Q1 FY26.
A look at the last five quarters shows volatile performance:
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) | 22.12YoY -29% | 49.53 | 31.11 |
| Profit (₹ Cr) | 1.10YoY -49% | 0.20 | 2.15 |
| Net Profit Margin | 5.0%YoY -28% | 0.4% | 6.9% |
The trailing twelve-month (TTM) revenue stands at ₹119.69 crore with a TTM profit of ₹4.15 crore, translating to a TTM net profit margin of 3.5%.
Key Points
- The company maintains a very strong balance sheet with minimal debt, reflected in a debt-to-equity ratio of just 0.03.
- Return on equity (RoE) for the period was 6.31%.
- The stock has faced significant pressure, down 46.6% over the past year and trading at a price-to-earnings (P/E) ratio of 11.0, a discount to the industry average.
The immediate challenge for Vedavaag is to stabilize its top-line performance while sustaining the recent improvement in profitability.
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· VEDAVAAG
(BSE)
ISIN: INE359B01010
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