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

Schneider Electric Infrastructure shares dropped 12% on Monday after the company reported a massive 70% year-on-year decline in net profit for the first quarter of fiscal 2027. Despite a 5% rise in revenue, earnings were hit hard by rising expenses, leading to a significant drop in earnings before interest and taxes (EBIT). The sharp fall in profitability has raised concerns among investors about the company's cost structure and operational efficiency in the current market environment.

However, the stock's decline was tempered by some positive developments. The company reported a record quarterly order intake of Rs 915 crore, which is 32.7% higher than the previous year. This growth in the order backlog suggests that the company's pipeline of future business remains strong. Investors will be closely watching the company's ability to manage costs and sustain this growth momentum in the coming quarters.