Apis India Q1 FY27 Results (BSE: 506166)
Signal: Margin expansion
The read
The quarter shows a sharp margin inflection but weak demand: revenue fell 23.8% YoY to ₹6,596.44 lakh while gross margin expanded 1,101bps to 49.5% and EBITDA margin rose 348bps to 10.8%; the sustainability of the profit improvement depends on whether the gross-margin gain persists, since volumes, pricing and the driver of the inventory-linked cost reduction were not disclosed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹65.96 Cr | -23.8% | -24.9% |
| EBIT | ₹6 Cr | -12.1% | |
| Net profit | ₹3.39 Cr | +34.0% | |
| EPS | ₹0.25 | +38.9% | |
| EBIT margin | 10.8% |
P&L walk
Revenue declined to ₹6,596.44 lakh, down 23.8% YoY and 24.9% QoQ, while gross margin expanded to 49.5% from 38.5% and EBITDA margin rose to 10.8% from 7.3%; PAT increased 34.0% to ₹338.75 lakh despite a ₹22.06 lakh associate loss.
Segments
The company reports a single operating segment; consolidated PAT of ₹338.75 lakh was ₹22.39 lakh below standalone PAT of ₹361.14 lakh because associates contributed a ₹22.06 lakh loss.
Key positives
- Gross margin expanded 1,101bps YoY to 49.5%, with reported cost of materials, purchases and inventory movement falling to ₹3,333.27 lakh from ₹5,326.18 lakh; management did not disclose whether this was input-cost, pricing or mix-led.
- Consolidated PAT rose 34.0% YoY to ₹338.75 lakh despite revenue declining 23.8%, helped by the associate loss narrowing to ₹22.06 lakh from ₹148.21 lakh.
- Standalone and consolidated revenue were identical at ₹6,596.44 lakh, indicating the group-level top-line decline was not caused by subsidiary revenue dilution.
Key concerns
- Revenue declined 23.8% YoY and 24.9% QoQ to ₹6,596.44 lakh, with no volume, realisation or demand commentary to establish a recovery path.
- Finance cost rose 33.9% YoY to ₹150.57 lakh while revenue fell 23.8%, raising finance-cost intensity from 1.3% to 2.3% of revenue.
- Employee expense rose 14.7% YoY to ₹989.56 lakh and employee cost intensity increased to 15.0% from 10.0%, limiting the quality of the margin improvement if revenue remains weak.
Research and educational content only. Not investment advice.