Schneider Electric Systems Q1 Profit Drops 45% on Higher Costs

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AuthorKavya Nair|Published at:
Schneider Electric Systems Q1 Profit Drops 45% on Higher Costs

Schneider Electric President Systems reported a 45% drop in Q1 profit to ₹4.47 crore, despite a 16.88% revenue increase to ₹109.53 crore. Rising raw material costs significantly impacted margins.

Schneider Electric President Systems Q1 Earnings

Schneider Electric President Systems Limited reported a significant 45.09% decrease in profit for the first quarter ended June 30, 2026, with net profit standing at ₹4.47 crore, down from ₹8.14 crore in the same period last year. Basic and Diluted Earnings Per Share (EPS) also fell by 45.02% to ₹3.70 from ₹6.73.

What just happened

Revenue from operations grew by 16.88% to ₹109.53 crore in Q1 FY27, compared to ₹93.71 crore in Q1 FY26. Total income was ₹111.44 crore.

However, profitability was heavily impacted by a sharp increase in the cost of raw materials and components, which surged to ₹81.17 crore from ₹58.29 crore year-on-year.

Why this matters

The substantial rise in input costs squeezed profit margins, leading to a nearly halving of net profit despite revenue growth. This indicates a challenge in passing on increased costs to customers or in managing operational efficiencies.

The backstory

Schneider Electric President Systems is a part of the global Schneider Electric group, focusing on power management and automation solutions.

What changes now

The company has appointed Mr. Devender Kumar Sharma as the Internal Auditor for FY 2026-27, effective August 12, 2026, replacing Mr. Vinay Kumar Awasthi who moved to a new role within the group. The board also approved material related party transactions, which will require shareholder approval.

Risks to watch

Continued high raw material costs could further pressure profitability. Managing these costs and maintaining revenue growth without margin erosion will be crucial.

Peer comparison

(No specific peer comparison data was provided in the filing.)

Context metrics (time-bound)

  • Q1 FY27 Revenue: ₹109.53 crore (up 16.88% YoY)
  • Q1 FY27 Profit: ₹4.47 crore (down 45.09% YoY)
  • Q1 FY27 EPS: ₹3.70 (down 45.02% YoY)
  • Raw Material Costs: ₹81.17 crore (up from ₹58.29 crore YoY)

What to track next

Investors will be keen to see how the company addresses the rising raw material costs and its impact on future earnings. Shareholder approval for related party transactions at the AGM will also be noteworthy.

Reader Takeaway: Revenue up, but profits down sharply due to cost pressures; watch cost management.

Disclaimer: This article is published for informational purposes only. This is not a buy sell recommendation.