Shish Industries Q1 FY27 Results (BSE: 540693)
Signal: Slipped to loss
The read
The trajectory has deteriorated sharply: despite 7.2% YoY consolidated revenue growth to ₹3548.71 lakh, gross margin contracted 1458bps to 23.5%, EBITDA fell 87.2% to ₹67 lakh and PAT swung to a ₹153.69 lakh loss; the key test is whether raw-material intensity normalizes, because lower employee and other expenses did not protect profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹35.49 Cr | 7.2% | -7.0% |
| EBIT | ₹-1.46 Cr | N/A | |
| Net profit | ₹-1.54 Cr | N/A | |
| EPS | ₹-0.04 | N/A | |
| EBIT margin | 1.9% |
P&L walk
Consolidated revenue rose 7.2% YoY to ₹3548.71 lakh, but gross margin compressed to 23.5% from 38.1% and EBITDA margin fell to 1.9%, driving PAT from ₹278.34 lakh profit to ₹153.69 lakh loss; the deterioration was amplified by a ₹213.77 lakh depreciation charge and subsidiary losses.
Segments
The company reports only one segment, Corrugated Plastic Products; the material divergence is between the ₹81.31 lakh standalone loss and ₹153.69 lakh consolidated loss, indicating subsidiaries added approximately ₹72.38 lakh to the group's loss.
Key positives
- Consolidated revenue increased 7.2% YoY to ₹3548.71 lakh despite declining 7.0% QoQ.
- Employee expense declined 26.2% YoY on a consolidated basis and other expenses declined 8.3% YoY to ₹650.79 lakh, showing some cost restraint.
- Finance costs were broadly stable YoY at ₹67.19 lakh, limiting balance-sheet financing pressure in the quarter.
- The company raised ₹7,234.28 lakh through a preferential issue, providing funding for capital expenditure and working-capital needs.
Key concerns
- Gross margin compressed 1458bps YoY to 23.5% as raw-material cost increased to 78.7% of revenue from 60.5%; revenue grew while input cost rose 39.3%, indicating inadequate cost pass-through or adverse mix.
- Consolidated EBITDA declined 87.2% YoY to ₹67 lakh and EBITDA margin fell to 1.9% from the prior-year implied 15.8%, showing that cost reductions did not offset material-cost pressure.
- Consolidated PAT swung from ₹278.34 lakh profit to a ₹153.69 lakh loss, while standalone PAT was also a ₹81.31 lakh loss, so the weakness is not confined to subsidiaries.
- Depreciation rose 71.9% YoY to ₹213.77 lakh on a consolidated basis, increasing the risk that recently added capacity is not yet earning adequate returns.
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