Schneider Electric Infrastructure shares tumble 12% after Q1 profit plunges 70% YoY

Schneider Electric Infrastructure Ltd shares came under sharp selling pressure on Monday, tumbling 12.08% to Rs 1,203.90, after the company reported a steep 70% year-on-year (YoY) decline in net profit for Q1FY27, despite modest revenue growth.The company’s consolidated net profit for the June quarter stood at Rs 12 crore, sharply lower than Rs 41 crore reported in the corresponding quarter last year.Revenue from operations, meanwhile, rose around 5% YoY to Rs 651.4 crore, compared with Rs 621 crore in Q1FY26. The company attributed the relatively moderate revenue growth to project execution timelines and the phased conversion of recent order wins into sales.Profitability takes a hitThe sharp decline in earnings was largely reflected at the operating level. EBIT fell to Rs 32.1 crore in Q1FY27 from Rs 66.7 crore a year earlier. According to the company, profitability was impacted by commodity price volatility and delays in passing on higher input costs on certain legacy orders.Despite the near-term pressure on earnings, Schneider Electric Infrastructure continues to maintain a strong order book, which could provide visibility for future revenue growth.While the quarterly profit numbers disappointed investors, the company delivered a strong performance on the order front. Schneider Electric Infrastructure recorded its highest-ever quarterly order intake of Rs 915 crore in Q1FY27. Its order backlog stood at Rs 2,169 crore as of June 30, 2026, up 32.7% YoY.The robust order book indicates healthy demand and provides the company with a strong revenue pipeline, although the pace of conversion into sales and the ability to pass on higher input costs will remain key factors to watch.Udai Singh, Managing Director & CEO of Schneider Electric Infrastructure, said Q1FY27 reflected the company’s strong market position, supported by record quarterly order intake, steady revenue growth and a robust expansion in its order backlog.He added that while profitability was affected by commodity cost volatility and delays in passing through cost increases on certain projects, the company remains focused on operational excellence, project execution and improving business quality.Stock performance and Technical outlookThe sharp Monday decline adds to the stock’s recent weakness, with shares having remained under pressure for some time. However, the longer-term performance remains impressive. The stock has delivered around 40% returns over the past one year, while it has surged nearly 265% in three years.The company currently commands a market capitalisation of around Rs 29,146 crore, while its 52-week high stands at Rs 1,548.On the technical front, the stock’s 14-day Relative Strength Index (RSI) stands at 51.1. An RSI below 30 is generally considered to indicate an oversold zone, while a reading above 70 is viewed as overbought. With the RSI currently near the middle of the range, the indicator does not point to an extreme oversold or overbought condition.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)