Shree Refrigerat H1FY27 Results (BSE: 544458)
Signal: Margin expansion
The read
The trajectory is a sharp H1 scale-up with revenue at ₹9,316.84 lakh, +84.9% YoY, and EBITDA margin inflecting to 13.60% from 11.23% as fixed-cost growth lagged revenue; however, gross margin compressed 614bps to 37.20%, operating cash flow was -₹4,247.47 lakh and the depreciation method change reduced reported depreciation by ₹51.45 lakh, making earnings quality and working-capital conversion the key watchpoints.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹93.17 Cr | +84.9% | N/A |
| Net profit | ₹6.89 Cr | +338.9% | |
| EPS | ₹1.93 | +278.4% | |
| EBIT margin | 13.60% |
P&L walk
Consolidated revenue rose to ₹9,316.84 lakh, +84.9% YoY, but gross margin fell to 37.20% from 43.34% as material consumption reached 69.34% of revenue; EBITDA still grew 123.8% to ₹1,266.68 lakh as employee costs grew 46.7%, depreciation fell 33.5% and finance costs grew only 0.9%, lifting EBITDA margin to 13.60%.
Key positives
- Revenue from operations reached ₹9,316.84 lakh, +84.9% YoY, with no comparable volume or realisation split disclosed.
- EBITDA rose 123.8% to ₹1,266.68 lakh versus revenue growth of 84.9%, a +38.9pp growth gap; employee costs grew 46.7%, depreciation declined 33.5% and finance costs grew only 0.9%.
- EBITDA margin expanded 237bps to 13.60%, indicating fixed and semi-fixed expenses grew materially slower than revenue.
- Standalone and consolidated PAT were closely aligned at ₹681.91 lakh and ₹688.90 lakh, respectively, limiting subsidiary-related earnings distortion.
Key concerns
- Gross margin compressed 614bps to 37.20% as material consumption increased to 69.34% of revenue from 67.78%; the filing does not disclose the driver.
- Operating cash flow was negative at ₹4,247.47 lakh despite PAT of ₹688.90 lakh, with inventories of ₹7,978.98 lakh and trade receivables of ₹12,849.66 lakh.
- Net debt increased to ₹3,876.23 lakh from ₹711.04 lakh at 30 September 2025, while short-term borrowings rose to ₹4,204.77 lakh from ₹2,148.29 lakh.
- Basic EPS grew 278.4% to ₹1.93, materially below PAT growth of 338.9%.
Research and educational content only. Not investment advice.