Jenburkt Pharma Q1 FY27 Results (BSE: 524731)
Signal: Revenue declined
The read
The key inflection is not a revenue slowdown but earnings conversion: revenue was flat YoY at ₹3551.20 lakh and gross margin improved 54bps to 82.2%, yet profit before exceptional items and tax fell 33.52% to ₹676.91 lakh because employee expenses rose 11.13%, other expenses rose 21.69%, and other income fell 26.44%; PAT was additionally supported by a low current tax charge of ₹100.00 lakh and should be viewed cautiously because other income represented 22.3% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹35.51 Cr | -0.04% | -20.43% |
| EBIT | ₹6.9 Cr | N/A | |
| Net profit | ₹5.89 Cr | -24.47% | |
| EPS | ₹13.34 | -24.47% | |
| EBIT margin | 21.2% |
P&L walk
Standalone revenue was ₹3551.20 lakh, flat YoY but down 20.43% QoQ; gross margin improved 54bps YoY to 82.2%, yet employee and other expenses rose faster than revenue, pulling profit before exceptional items and tax down 33.52% YoY to ₹676.91 lakh, while PAT declined 24.47% to ₹588.56 lakh.
Key positives
- Gross margin increased 54bps YoY to 82.2%, with raw materials and traded goods cost declining to 17.8% of revenue from 18.3% YoY.
- EPS declined in line with PAT, both falling 24.47% YoY, indicating no visible dilution or minority-interest divergence.
- Finance costs remained low at ₹13.02 lakh, equal to 0.4% of revenue, despite rising 18.47% YoY.
Key concerns
- Revenue was flat YoY at ₹3551.20 lakh and declined 20.43% QoQ, providing no evidence of accelerating demand.
- Employee benefit expenses rose 11.13% YoY to ₹1302.52 lakh and other expenses rose 21.69% to ₹1013.81 lakh, weakening operating profit conversion despite gross-margin expansion.
- PAT fell 24.47% YoY to ₹588.56 lakh, while profit before exceptional items and tax fell 33.52% to ₹676.91 lakh.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.