Cosmo Ferrites Q1 FY27 Results (BSE: 523100)
Signal: Margin expansion
The read
The operating inflection is positive but not yet high quality: revenue reached ₹28.98 crore, +7.7% YoY, and EBITDA rose +24.7% with margin expanding to 12.9%, yet gross margin fell 360bps as raw-material cost rose to 38.5% of revenue; PAT growth to ₹0.99 crore is amplified by ₹0.78 crore of other income and a ₹0.44 crore conditional promoter-loan interest waiver.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹28.98 Cr | 7.7% | +6.6% |
| EBIT | ₹2.6 Cr | 34.7% | |
| Net profit | ₹0.99 Cr | 1880.0% | |
| EPS | ₹0.83 | 1975.0% | |
| EBIT margin | 12.9% |
P&L walk
Standalone revenue increased to ₹28.98 crore, +7.7% YoY and +6.6% QoQ, while EBITDA rose to ₹3.74 crore, +24.7% YoY, despite gross-margin compression to 61.5%; PAT of ₹0.99 crore was also supported by ₹0.78 crore of other income and lower finance costs.
Key positives
- EBITDA increased to ₹3.74 crore, +24.7% YoY, versus revenue growth of +7.7%, with EBITDA margin expanding 140bps to 12.9%.
- Employee benefits expense rose +10.8% YoY to ₹6.49 crore, slower than revenue growth of +7.7%, supporting the operating-margin improvement.
- Finance costs declined 30.8% YoY to ₹1.28 crore, including a ₹0.44 crore conditional waiver of promoter-loan interest.
Key concerns
- Gross margin compressed 360bps YoY to 61.5% as raw-material cost increased to 38.5% of revenue from 35.0%; the filing does not disclose the cause or evidence of pass-through.
- Revenue growth was only +7.7% YoY to ₹28.98 crore, while the filing provides no volume, realisation or capacity-utilisation data to validate the manufacturing momentum.
- PAT of ₹0.99 crore includes ₹0.78 crore of other income, which represented 59.1% of PBT, making the bottom-line rebound substantially less operational than the +1880.0% headline growth suggests.
Earnings quality: includes non-operating other income
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