VTM Q1 FY27 Results (BSE: 532893)
Signal: Steady quarter
The read
The key inflection is revenue acceleration to +36.70% YoY from the recent Q4FY26 growth of +1.36%, but earnings quality remains weak: PAT fell 58.03% YoY to ₹193.24 lakh as finance cost rose 102.30% and employee cost rose 47.91%; the 251bps gross-margin expansion did not translate into profit growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹98.4 Cr | +36.70% | -10.67% |
| Net profit | ₹1.93 Cr | -58.03% | |
| EPS | ₹0.19 | -58.70% |
P&L walk
Standalone revenue increased 36.70% YoY to ₹9,840.41 lakh, while PAT declined 58.03% to ₹193.24 lakh; gross margin expanded 251bps but higher employee, finance and depreciation costs weakened earnings conversion.
Key positives
- Revenue increased 36.70% YoY to ₹9,840.41 lakh, a marked acceleration from Q4FY26's 1.36% YoY growth.
- Gross margin expanded 251bps YoY to 31.31%, although raw material cost as a percentage of revenue also increased to 74.57% from 70.82%.
- Sequential PAT recovered to ₹193.24 lakh from ₹80.65 lakh as the prior quarter's ₹277.13 lakh exceptional charge did not recur.
- Basic and diluted EPS were both ₹0.19, suggesting no evidence of incremental share dilution in the reported quarter.
Key concerns
- PAT declined 58.03% YoY to ₹193.24 lakh despite 36.70% revenue growth, showing poor operating conversion.
- Finance cost increased 102.30% YoY to ₹79.91 lakh, materially outpacing revenue growth.
- Employee benefits expense rose 47.91% YoY to ₹839.96 lakh, also growing faster than revenue.
- Raw material cost increased to 74.57% of revenue from 70.82% YoY, while the filing does not disclose the reason for the gross-margin expansion.
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