Mansoon Trading (ZMANSOON) Q1 FY27 Profit Crashes 61% as Margins Collapse
The NBFC's revenue held up better than its bottom line, which was squeezed by a sharp drop in profitability from the prior year's exceptional quarter.
Mansoon Trading Company's Q1 FY27 saw a modest revenue dip but a severe profit decline. The net profit margin collapsed, highlighting a stark contrast to the exceptionally strong performance a year ago.
For a small NBFC like Mansoon Trading, the story is often in the spread between what it earns on loans and what it pays to fund them. The first quarter of FY27 delivered a jarring split: revenue was only slightly softer, but profit fell off a cliff.
Revenue for the quarter ended June 2026 stood at ₹11.13 crore, down 7.2% from the same period last year. Profit after tax, however, plunged 61.4% to ₹2.79 crore. The net profit margin tells the full story, collapsing to 25.1% from an exceptional 60.3% a year ago.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Jun 2026 | Mar 2026 | Jun 2025 |
| Revenue (₹ Cr) | 11.13YoY -7.2% | 8.52 | 11.99 |
| Profit (₹ Cr) | 2.79YoY -61% | 2.52 | 7.23 |
| Net Profit Margin | 25.1%YoY -58% | 29.6% | 60.3% |
Sequentially, there was a rebound. Revenue jumped 30.6% from a weak Q4, and profit rose 10.7%. This points to a recovery in core business activity from the previous quarter's low base.
The year-ago comparison that distorts
The extreme YoY profit drop is less about a current crisis and more about an unsustainable prior-year peak. Data from Clartha shows the company's operating profit margin was 84.7% in Q1 FY26, which has since normalized to 63.6%. This suggests last year's quarter benefited from unusually high yields or low costs that were not repeatable.
The margin squeeze is the real story
With revenue nearly stable, the 35-percentage-point margin compression is the quarter's defining event. Research indicates the NBFC sector faces a rising cost of funds as interest rates climb. For a company reliant on wholesale funding, this directly pressures net interest margins—the core of its profitability.
The company maintains a debt-free status on its books, as noted by Investor Feed. However, this does not shield it from the cost of external borrowings needed to fund its loan book. The margin pressure is a sector-wide challenge, not a company-specific failure.
A stable, if unspectacular, footing
Trailing-twelve-month figures provide a clearer picture of the underlying business. Over the last four quarters, Mansoon Trading generated a PAT margin of 28.6% on revenue of ₹37.35 crore. This is a more realistic benchmark than the inflated year-ago figure.
The quarter shows the company can generate steady revenue, but profitability is now tethered to a tighter interest-rate environment. The valuation, with a P/E of 0.1 as per the payload, reflects deep market skepticism about earnings sustainability.
Key Points
- Profit after tax fell 61.4% year-on-year to ₹2.79 crore, far outpacing a 7.2% decline in revenue.
- The net profit margin collapsed to 25.1% from 60.3% in Q1 FY26, normalizing from an exceptionally strong prior-year period.
- Sequentially, performance improved with revenue up 30.6% and profit up 10.7%, indicating a recovery from a weak Q4.
- The core challenge is margin pressure, likely driven by a rising cost of funds in a tightening interest rate cycle for NBFCs.
- Trailing-twelve-month performance shows a more stable PAT margin of 28.6%, offering a realistic earnings baseline.
Hexa Perspective
The quarter reveals a business caught between two narratives. The year-on-year collapse is a mirage, created by an unsustainable profit peak last June. The real read is in the sequential pickup and the TTM margin around 29%—this is the company's current earning power.
That power is now under pressure. With sector reports from Kotak and Nuvama highlighting rising funding costs for NBFCs, Mansoon's margin has likely found a lower ceiling. Investors are weighing whether its revenue stability can offset this structural squeeze, a question reflected in its minuscule valuation.
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