Kalind Q1 FY27 Results (BSE: 526935)
Signal: Margin expansion
The read
A second consecutive quarter of robust margin expansion above 50% OPM, powered by collapse in cost of materials as % of revenue from 52.9% to 5.3%. However, EPS dilution from a 1:2 bonus issue is stark (PAT +186% vs EPS -93%), and capital-raising plans (USD 65M QIP/FCCB) signal further dilution ahead. Depreciation leap from nil YoY suggests a material capex cycle entering the P&L.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹34.91 Cr | +156.69% | +15.17% |
| EBIT | ₹19.01 Cr | +207.33% | |
| Net profit | ₹15.02 Cr | +186.1% | |
| EPS | ₹1.23 | -92.97% | |
| EBIT margin | 54.45% |
P&L walk
Consolidated revenue ₹35.06 Cr +158% YoY; PAT ₹14.65 Cr +175% YoY; OPM 53.3% — margin slightly lower than standalone but still healthy.
Key positives
- Standalone revenue ₹34.91 Cr, +157% YoY, accelerating from prior quarter's trajectory.
- Standalone OPM 54.5%, expanding ~900bps YoY — cost of materials collapsed from 52.9% to 5.3% of revenue.
- Standalone PAT ₹15.02 Cr, +186% YoY, with sequential growth of 39%.
- Strong operating cash flow implied by low finance costs (0.06% of revenue) and minimal working capital needs.
Key concerns
- EPS diluted 93% YoY on a 1:2 bonus issue; further dilution from proposed USD 65M fundraise (QIP/FCCB) is a risk.
- Depreciation jumped from nil YoY to ₹3.17 Cr — 9.1% of revenue — suggesting a heavy capex cycle that will pressure margins as it normalizes.
- Employee costs rose from ₹0.05 Cr to ₹1.75 Cr YoY — 5% of revenue — a new fixed-cost base.
Research and educational content only. Not investment advice.