Vikram Thermo Q1 FY27 Results (BSE: 530477)
Signal: Margin expansion
The read
The key inflection is operating profitability: revenue grew 32.4% YoY to 3787.42 lakh, but EBITDA grew 64.6% to 1890.00 lakh and EBITDA margin expanded about 980bps to 49.9%; lower raw-material intensity at 32.0% of revenue versus 37.0% and fixed-cost growth below sales indicate both input-cost tailwind and operating leverage, although the filing does not disclose the source of material-cost improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹37.87 Cr | 32.4% | +0.3% |
| EBIT | ₹18.02 Cr | 67.2% | |
| Net profit | ₹13.28 Cr | 67.3% | |
| EPS | ₹4.24 | 67.6% | |
| EBIT margin | 49.9% |
P&L walk
Standalone revenue increased 32.4% YoY and was broadly flat QoQ, while EBITDA rose 64.6% YoY and PAT rose 67.3% as raw-material intensity declined and fixed costs grew more slowly than sales.
Key positives
- Gross margin expanded about 390bps YoY to 72.4% as raw-material cost declined to 32.0% of revenue from 37.0%; the filing does not disclose whether this reflects input deflation, pricing or mix.
- EBITDA grew 64.6% YoY versus revenue growth of 32.4%, a 32.2pp growth gap, while EBITDA margin expanded about 980bps to 49.9%.
- Operating leverage is evidenced by employee cost growth of 20.6%, depreciation growth of 25.3% and finance-cost decline of 4.0%, all materially below revenue growth of 32.4%.
- PAT grew 67.3% YoY to 1328.16 lakh and EPS grew 67.6% to ₹4.24, with earnings quality classified clean.
Key concerns
- The filing does not disclose polymer volumes, realisations or product mix, so the 32.4% revenue growth cannot be attributed between volume and price/mix.
- The raw-material tailwind is not explicitly attributed by management and requires confirmation in subsequent quarters.
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