Lords Mark Industries Q1 FY27 Results (BSE: 501261)
Signal: Steady quarter
The read
The key inflection is margin rather than growth: consolidated gross margin expanded to 23.5% from 16.5% QoQ and EBITDA margin to 17.6% from 12.0%, but revenue fell 37.3% QoQ to ₹30,768.21 lakh and PAT fell 16.1% to ₹3,318.23 lakh; the margin improvement is partly supported by sharply lower operating expenses and is not yet validated by YoY comparatives.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹307.68 Cr | N/A | -37.3% |
| EBIT | ₹51.71 Cr | N/A | |
| Net profit | ₹33.18 Cr | N/A | |
| EPS | ₹0.78 | N/A | |
| EBIT margin | 17.6% |
P&L walk
Consolidated revenue declined to ₹30,768.21 lakh, -37.3% QoQ, but gross margin expanded to 23.5% from 16.5% and EBITDA margin to 17.6% from 12.0%; PAT fell 16.1% QoQ to ₹3,318.23 lakh.
Segments
There is no reported segment table, but subsidiaries contributed ₹2,744.18 lakh of revenue and ₹101.79 lakh of pre-consolidation profit; consolidated revenue was therefore 9.7% above standalone revenue and consolidated PAT 3.2% above standalone PAT.
Key positives
- Consolidated gross margin increased to 23.5% from 16.5% QoQ as raw-material intensity fell to 76.5% of revenue from 83.5%.
- Consolidated EBITDA margin expanded to 17.6% from 12.0% QoQ, despite EBITDA declining to ₹5,415.08 lakh from ₹5,898.98 lakh, because operating expenses fell faster than revenue.
- Consolidated operating cash flow was positive at ₹528.88 lakh, compared with negative ₹1,587.41 lakh standalone cash flow, with receivables declining to ₹44,551.73 lakh from ₹61,335.38 lakh.
Key concerns
- Revenue from operations declined 37.3% QoQ to ₹30,768.21 lakh after ₹49,117.45 lakh in Q4FY26, so the improved 17.6% EBITDA margin has not yet been demonstrated through a YoY cycle.
- Finance cost increased 7.5% QoQ to ₹623.90 lakh on a consolidated basis, while consolidated revenue declined 37.3%.
- Standalone short-term loans and advances increased to ₹30,795.82 lakh from ₹6,696.52 lakh, creating a working-capital quality issue despite lower receivables.
- The filing states that subsidiaries with ₹11,139.01 lakh of assets, ₹2,744.18 lakh of revenue and ₹101.79 lakh of profit were reviewed by other auditors rather than the reporting auditor.
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