Lakshmi Mills Q1 FY27 Results (BSE: 502958)
Signal: Loss reversed
The read
The key inflection is a genuine operating turnaround: revenue grew 8.4% YoY to ₹5,971.91 lakh, gross margin expanded approximately 170bps to 56.5%, EBITDA rose 61.8% to ₹898 lakh, and PAT turned positive at ₹311.05 lakh, although the sequential revenue decline of 11.2% means durability remains unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹59.72 Cr | 8.4% | -11.2% |
| EBIT | ₹6.25 Cr | 181.5% | |
| Net profit | ₹3.11 Cr | N/A | |
| EPS | ₹44.72 | N/A | |
| EBIT margin | 15% |
P&L walk
Revenue increased 8.4% YoY but fell 11.2% sequentially; gross margin expanded to approximately 56.5% from 54.8% YoY, EBITDA rose 61.8% to ₹898 lakh, and PAT turned positive at ₹311.05 lakh from a ₹2,202.98 lakh loss.
Segments
Textiles drove the recovery, with revenue up 8.2% YoY to ₹5,313.32 lakh and segment result up 62.7% to ₹741.77 lakh; rental services also grew revenue 10.7% and narrowed its loss to ₹28.79 lakh from ₹246.14 lakh.
Key positives
- Textile segment result rose 62.7% YoY to ₹741.77 lakh, materially faster than textile revenue growth of 8.2%.
- EBITDA increased 61.8% YoY to ₹898 lakh on revenue growth of 8.4%, with EBITDA margin reported at 15%.
- Gross margin expanded approximately 170bps YoY to 56.5%, while raw-material consumption declined to 48.3% of revenue from 49.7%.
- Finance costs declined 33.7% YoY to ₹213.89 lakh, supporting the PAT turnaround to ₹311.05 lakh.
Key concerns
- Revenue declined 11.2% sequentially from ₹6,724.63 lakh to ₹5,971.91 lakh, so the YoY recovery has not yet established consistent momentum.
- Gross-margin expansion is not attributed by management in the filing, leaving uncertainty over whether the improvement is repeatable.
- Segment assets declined 4.2% YoY to ₹1,09,259.47 lakh, while the filing provides no capex or cash-flow detail to confirm the next investment cycle.
Research and educational content only. Not investment advice.