Cropster Agro Q1 FY27 Results (BSE: 523105)
Signal: Margin expansion
The read
The main inflection is margin rather than demand: revenue grew only +7.0% YoY to ₹5458.99 lakh, but gross margin expanded 466bps to 10.0% as raw-material and inventory cost fell 461bps to 90.0% of revenue, lifting EBITDA margin 170bps to 9.8% and PAT +34.5% to ₹533.56 lakh; the filing does not establish whether the input-cost benefit is durable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹54.59 Cr | 7.0% | +208.7% |
| EBIT | ₹5.34 Cr | 29.3% | |
| Net profit | ₹5.34 Cr | 34.5% | |
| EPS | ₹0.06 | 20.0% | |
| EBIT margin | 9.8% |
P&L walk
Standalone revenue increased to ₹5458.99 lakh, +7.0% YoY, while gross margin expanded to 10.0% from 5.3% as raw-material and inventory cost fell to 90.0% of revenue from 94.6%; EBITDA grew +29.3% to ₹533.56 lakh and PAT rose +34.5% to ₹533.56 lakh, with no other-income contribution.
Key positives
- Gross margin expanded 466bps YoY to 10.0% as raw-material and inventory cost declined to 90.0% of revenue from 94.6%; this was the principal earnings driver.
- EBITDA increased +29.3% YoY to ₹533.56 lakh and EBITDA margin rose 170bps to 9.8%, materially outpacing the +7.0% revenue growth.
- Finance costs fell 96.0% YoY to ₹0.08 lakh and other income was ₹0.00 lakh, indicating that the ₹533.56 lakh PAT was operational rather than treasury-income driven.
Key concerns
- Revenue growth was only +7.0% YoY to ₹5458.99 lakh, and the filing provides no volume, realisation or mix data to validate the quality of growth.
- Gross-margin expansion is dependent on raw-material and inventory cost falling 461bps as a percentage of revenue; management does not disclose whether this is structural or temporary.
- EPS grew only +20.0% YoY to ₹0.06 versus PAT growth of +34.5%, creating an unexplained per-share earnings divergence.
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