Nurture Well Industries Q1 FY27 Results (BSE: 531889)
Signal: Revenue declined
The read
The key inflection is sequential recovery from Q4FY26's ₹19.9 lakh EBITDA and ₹117.37 lakh consolidated loss to ₹1,658.29 lakh EBITDA and ₹1,347.27 lakh PAT, but the underlying trajectory remains fragile because Q1FY27 revenue fell 39.0% YoY, overseas revenue fell 42.7%, EBITDA margin contracted 42bps YoY, and EPS fell 56.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹152.81 Cr | -39.0% | -23.4% |
| EBIT | ₹15.74 Cr | -38.6% | |
| Net profit | ₹13.47 Cr | -45.6% | |
| EPS | ₹0.37 | -56.0% | |
| EBIT margin | 10.85% |
P&L walk
Consolidated revenue declined to ₹15,281.17 lakh, -39.0% YoY, while gross margin expanded to 17.28% from 14.69% as variable cost fell to 82.72% of revenue from 85.31%; EBITDA margin nevertheless contracted to 10.85% from 11.27%, and PAT fell to ₹1,347.27 lakh from ₹2,476.25 lakh.
Segments
Overseas remained the earnings driver at ₹12,548.38 lakh of revenue and ₹1,441.34 lakh of EBIT, but revenue fell 42.7% YoY; its EBITDA nevertheless turned around from a ₹330.10 lakh loss QoQ to ₹1,441.83 lakh profit, while India revenue fell 10.8% YoY and EBIT fell 21.3%.
Key positives
- Gross margin expanded 259bps YoY to 17.28% as variable cost declined to 82.72% of revenue from 85.31%, although management did not disclose the cause.
- Overseas EBITDA recovered to ₹1,441.83 lakh from a QoQ loss of ₹330.10 lakh, supporting the consolidated sequential turnaround.
- Standalone PAT increased 20.8% YoY to ₹150.96 lakh, while consolidated segment assets remained 22.6% above the year-ago level at ₹75,725.19 lakh.
Key concerns
- Consolidated revenue declined 39.0% YoY to ₹15,281.17 lakh, with overseas revenue down 42.7% to ₹12,548.38 lakh.
- Consolidated EBITDA margin contracted 42bps YoY to 10.85% and PAT fell 45.6% to ₹1,347.27 lakh despite gross-margin expansion.
- Finance cost increased to ₹74.80 lakh from ₹3.32 lakh YoY, a 2,153.6% increase, creating a meaningful drag on earnings conversion.
- Basic EPS declined 56.0% YoY to ₹0.37 versus PAT decline of 45.6%, triggering an earnings-quality dilution/minority-interest warning.
Research and educational content only. Not investment advice.