India Gelatine Q1 FY27 Results (BSE: 531253)
Signal: Margin expansion
The read
The key inflection is a sharp gross-margin recovery to 64.0% from 52.5% YoY as raw-material intensity fell to 36.0% from 47.5%, lifting EBITDA margin to 26%; however, PAT growth of +14.1% lagged EBIT growth of +19.9% and remains partly supported by other income equal to 22.8% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹45.68 Cr | 16.8% | +17.2% |
| EBIT | ₹10.73 Cr | 19.9% | |
| Net profit | ₹8.08 Cr | 14.1% | |
| EPS | ₹11.4 | 14.1% | |
| EBIT margin | 26% |
P&L walk
Revenue increased to ₹4,567.82 lakh, +16.8% YoY and +17.2% QoQ, while raw-material intensity fell to 36.0% from 47.5% YoY, lifting gross margin to 64.0%; EBITDA rose +17.3% YoY to ₹1,186.00 lakh, but PAT growth of +14.1% was moderated by other income contributing 22.8% of PBT.
Key positives
- Revenue increased to ₹4,567.82 lakh, +16.8% YoY and +17.2% QoQ, reversing the recent contraction indicated by the company fundamentals.
- Gross margin expanded 1,150bps YoY to 64.0% as raw-material consumption fell to 36.0% of revenue from 47.5%; this is the first disclosed quarter in this filing series and requires confirmation in subsequent results.
- EBITDA rose to ₹1,186.00 lakh, +17.3% YoY, and EBITDA margin improved 150bps to 26%, while finance costs declined 29.5% YoY to ₹8.06 lakh.
- EPS rose 14.1% YoY to ₹11.40, tracking PAT growth without a dilution-related divergence.
Key concerns
- PAT growth of +14.1% YoY lagged EBIT growth of +19.9%, indicating that the bottom-line conversion was weaker than the operating-profit improvement.
Earnings quality: includes non-operating other income
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