Pajson Agro H1FY27 Results (BSE: 544657)
Signal: Margin pressure
The read
The trajectory is a margin-and-cash-flow inflection rather than a clean growth acceleration: H1FY27 revenue rose 21.14% to ₹14,339.18 lakh, but gross margin compressed 630bps to 24.17%, EBITDA declined 3.60% to ₹2,030.81 lakh, PAT fell 11.64% to ₹1,255.63 lakh and operating cash flow was negative ₹2,274.56 lakh while inventory expanded to ₹9,568.70 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹143.39 Cr | +21.14% | N/A |
| EBIT | ₹19.17 Cr | -4.54% | |
| Net profit | ₹12.56 Cr | -11.64% | |
| EPS | ₹5.27 | -35.10% | |
| EBIT margin | 14.16% |
P&L walk
Standalone revenue increased 21.14% to ₹14,339.18 lakh, but gross margin compressed 630bps to 24.17%, EBITDA declined 3.60% to ₹2,030.81 lakh and PAT fell 11.64% to ₹1,255.63 lakh as material and finance costs rose faster than sales.
Key positives
- Revenue from operations increased 21.14% to ₹14,339.18 lakh, providing scale for the greenfield expansion despite weaker margins.
- Employee and other expenses grew 7.11% to ₹1,607.19 lakh, slower than revenue growth and providing partial operating-cost control.
- PPE plus CWIP increased to ₹5,659.20 lakh from ₹4,147.86 lakh, while depreciation rose 15.49% to ₹113.52 lakh, a clean depreciation-to-capex signal.
Key concerns
- Gross margin compressed 630bps to 24.17% as raw-material consumption rose to 83.03% of revenue from 81.17%; revenue grew but the company absorbed the cost pressure.
- Finance costs increased 111.85% to ₹226.05 lakh as short-term borrowings rose to ₹5,924.66 lakh from ₹3,406.10 lakh.
- Operating cash flow was negative ₹2,274.56 lakh versus negative ₹712.46 lakh in H1FY26, driven partly by inventory of ₹9,568.70 lakh versus ₹3,758.79 lakh.
- PAT declined 11.64% to ₹1,255.63 lakh despite other income rising to ₹171.65 lakh from ₹0.24 lakh, indicating weaker core operating conversion.
- EPS declined 35.10% to ₹5.27, materially below the 11.64% PAT decline because paid-up share capital increased to ₹2,380.96 lakh from ₹1,750.00 lakh.
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