Super Sales Ind. Q1 FY26 Results (BSE: 512527)

20 Jul 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

Q1FY26 marked a sharp inflection: revenue grew 13.6% YoY, but EBITDA margin exploded from 10.5% to 16.9% on input cost tailwinds and operating leverage, pushing net profit up 410%. The Textile division delivered the turnaround, while the Engineering division lagged. The margin expansion appears sustainable if raw material costs remain favourable, but the decline in depreciation despite rising assets warrants monitoring.

P&L walk

Revenue grew 13.6% YoY, gross margin expanded 588bps to 45.45% driven by input cost tailwind (raw material cost as % of revenue fell from 60.42% to 54.55%), and employee cost leverage added 106bps; EBITDA margin surged 640bps to 16.93%. Net profit jumped 410% to ₹900.18 lakh, aided by lower depreciation and higher other income, but finance cost rose 24%.

Segments

Textile Division was the overwhelming driver, with PBIT surging 383% YoY to ₹1,209.95 lakh (83% of total segment PBIT), while Engineering Division PBIT fell 35% to ₹48.10 lakh, partially offsetting the gains.

Key positives

• Revenue growth of 13.6% YoY, driven by Textile division (+17.0%).
• EBITDA margin expanded 640bps YoY to 16.93%, the highest in recent quarters.
• Net profit surged 410% to ₹900 lakh, with EPS of ₹29.31.
• Textile division PBIT nearly 5x YoY, indicating strong operational turnaround.
• Employee cost leverage improved 106bps, and interest coverage ratio rose to 7.6x.

Key concerns

• Engineering division PBIT declined 35% YoY, a drag on overall profitability.
• Finance cost increased 24% YoY, partly eroding operating gains.
• Depreciation fell 9% despite rising assets, flagged as a potential earnings quality issue.
• Other income (₹209 lakh) is significant and may not be recurring at this level.

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