Panchmahal Steel Q1 FY27 Results (BSE: 513511)
Signal: Loss reversed
The read
Sharp turnaround in profitability driven by a 970bps YoY expansion in gross margin, as raw material cost fell from 72.4% to 61.9% of revenue, more than offsetting modest top-line growth and higher power costs.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹93.97 Cr | +7.3% | -11.3% |
| EBIT | ₹6.82 Cr | N/A | |
| Net profit | ₹4.34 Cr | +325.3% | |
| EPS | ₹2.27 | +324.8% | |
| EBIT margin | 9.4% |
P&L walk
The entire turnaround is explained by a 970bps gross margin expansion (24.5% vs 14.8% YoY) on sharply lower raw material costs (61.9% vs 72.4% of revenue), which flowed through to a 9.4% EBITDA margin even as revenue grew only 7.3%.
Key positives
- Revenue growth of 7.3% YoY to ₹93.97 Cr (9,396.84 lakhs)
- Gross margin expanded 970bps YoY to 24.5% on lower raw material costs
- EBITDA turned positive at ₹8.82 Cr vs ₹0.84 Cr, margin 9.4%
- PAT of ₹4.34 Cr vs loss of ₹1.92 Cr YoY
- Finance cost reduced 30% YoY to ₹1.03 Cr
Key concerns
- QoQ revenue declined 11.3% from Q4FY26
- Power & fuel costs rose as a percentage of revenue from 12.8% to 13.6% YoY
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