Maharashtra Seamless Q3 profit jumps 31% despite revenue slump and margin squeeze

Maharashtra Seamless reported a 30.6% year-on-year rise in consolidated net profit for the December quarter at ₹242.9 crore, compared with ₹186 crore in the corresponding period last year. The improvement in profit came even as revenue and operating performance weakened sharply on a year-on-year basis.

Revenue for the quarter declined 22.6% to ₹1,090 crore from ₹1,408 crore a year ago. EBITDA fell 45.5% year-on-year to ₹152.8 crore from ₹280.3 crore, reflecting pressure on operating performance. EBITDA margin narrowed to 14% in Q3, compared with 19.9% in the same quarter last year, indicating a significant contraction in profitability.

The Q3 performance followed a weak September quarter, when the company reported a sharp decline across key financial parameters. In Q2, Maharashtra Seamless posted a 43.2% year-on-year fall in net profit to ₹125 crore from ₹220 crore. Revenue declined 10.3% to ₹1,158 crore from ₹1,291 crore in the year-ago period. EBITDA fell 47% year-on-year to ₹122.6 crore from ₹231.2 crore, while EBITDA margin dropped to 10.6% from 17.9%.

Margins in Q2 also declined sharply, mirroring the pressure seen in the December quarter. The stock performance during the September quarter was weak, with the share price closing down over 1% during the period. The stock remained under sustained pressure, having declined from levels above ₹750 at the end of June. It had touched a high of ₹814 in December last year and slipped to a year-low of ₹567 last month, before trading below the ₹580 level.

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Despite the year-on-year contraction in revenue, EBITDA and margins in Q3, the sequential recovery in profit highlights a mixed operating environment for the company amid continued volatility in performance across quarters.

On the NSE, Maharashtra Seamless shares closed at ₹519, up ₹12.55 or 2.48%.