Indian Toners Q1 FY27 Results (BSE: 523586)
Signal: Revenue declined
The read
Q1FY27 results show a clear deceleration: revenue fell 7.4% YoY and net profit dropped 22%, marking a reversal from the prior year's growth trajectory. Input cost inflation (raw material +8.7% vs revenue -7.4%) compressed margins despite a sharp rise in other income. The company's zero-debt position and low finance cost remain positives, but the core operating weakness is a concern.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹36.21 Cr | -7.4% | -20.8% |
| EBIT | ₹5.51 Cr | -24.8% | |
| Net profit | ₹6.1 Cr | -22.2% | |
| EPS | ₹1.17 | -22.5% | |
| EBIT margin | 25.81% |
P&L walk
Revenue declined 7.4% YoY as higher raw material cost (+8.7% YoY) and employee cost (+4.5%) outpaced revenue; other income surged 58% but was insufficient to offset operating weakness, leading to a 22% drop in net profit.
Key positives
- Negligible finance cost (₹3.87 lakh) indicating zero net debt, consistent with fundamentals D/E of 0.
- Other income surged 58% YoY to ₹249.79 lakh, providing a buffer to operating weakness.
Key concerns
- Revenue declined 7.4% YoY after several quarters of growth, signaling demand or competition headwinds.
- Cost of materials consumed grew 8.7% YoY, outpacing revenue and squeezing gross margin by ~840bps.
- Net profit fell 22% YoY, with higher deferred tax charge adding to the drag.
- EBITDA margin contracted 34bps YoY to 25.81%.
Research and educational content only. Not investment advice.