Kernex Microsystems (India) delivered remarkable financial performance in Q1 FY27, with consolidated net profit surging nearly 15-fold to ₹109.85 crore compared to ₹7.41 crore in the corresponding quarter of the previous year. According to latest reports, this represents one of the most significant profit growth rates in recent corporate earnings announcements, with the company benefiting from execution of Kavach-related orders that drove substantial revenue growth. Sequentially, profit also increased sharply from approximately ₹68.25 crore in Q4 FY26, demonstrating the company's exceptional operational performance during the quarter.
The company's revenue from operations surged to ₹503.58 crore during Q1 FY27 from just ₹59.93 crore in Q1 FY26, reflecting the substantial ramp-up in execution of orders related to India's indigenous automatic train protection system, Kavach. As per Business Upturn, revenue was also almost double the ₹254.58 crore reported in the March 2026 quarter, with the scale-up coming as Indian Railways accelerates deployment of Kavach. The revenue growth of roughly 740% year-on-year demonstrates how Kavach execution is fundamentally changing Kernex Microsystems' operating scale.
Operating performance strengthened considerably with EBITDA of around ₹163 crore compared with approximately ₹12.6 crore in Q1 FY26, while EBITDA margin expanded to 32.33% from 22.50% in the year-ago period. Despite accounting for a ₹30 crore provision towards Kavach warranties during the quarter, the company still delivered an EBITDA margin above 32% and profit before tax of ₹148.14 crore. The margin expansion reflects substantial operating leverage as Kavach order execution gathers scale, with the company generating much higher execution run rates compared to a year ago.
Profit Before Tax (PBT) increased substantially by 1451% to ₹148.14 crore in Q1 FY27 compared to ₹9.55 crore in the previous year quarter, as reported by Business Standard. Similarly, PBDT (Profit Before Depreciation and Tax) rose 1344% to ₹150.08 crore from ₹10.39 crore in the corresponding quarter of the previous year. After a tax expense of approximately ₹38.29 crore, consolidated net profit came in at ₹109.85 crore, with basic and diluted earnings per share for the quarter standing at ₹65.37, compared with ₹4.45 and ₹4.44 respectively in the year-ago period.
