Meenakshi (I) Q1 FY27 Results (BSE: 544831)
Signal: Margin expansion
The read
The operating inflection is a 1391bps YoY expansion in EBITDA margin to 25.5% despite a 3.44% revenue decline, but earnings quality is weak because other income of 711.13 lakh comprised 93.2% of PBT and the gross-margin improvement was driven alongside an inventory adjustment swing rather than a disclosed pricing or input-cost benefit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹32.25 Cr | -3.44% | -29.47% |
| EBIT | ₹7.73 Cr | +126.13% | |
| Net profit | ₹7.13 Cr | +152.84% | |
| EPS | ₹6.34 | +152.59% | |
| EBIT margin | 25.5% |
P&L walk
Revenue declined to 3224.75 lakh, down 3.44% YoY and 29.47% QoQ, while gross margin expanded 442bps to 54.33% because the inventory adjustment swung from an expense of 272.42 lakh to a credit of 200.68 lakh; EBITDA margin rose to 25.5%, but PAT growth to 712.86 lakh was heavily supported by other income of 711.13 lakh.
Segments
The Others segment was the main earnings contributor at 429.87 lakh of result versus 343.32 lakh for Textiles, while Textiles revenue grew 4.14% YoY to 3502.16 lakh and Others revenue grew 14.32% YoY to 433.72 lakh.
Key positives
- EBITDA margin expanded 1391bps YoY to 25.5%, with EBITDA rising to 821.01 lakh even as revenue declined 3.44%.
- Textiles segment result increased to 343.32 lakh from 28.24 lakh YoY, while its segment revenue rose 4.14% to 3502.16 lakh.
- Total segment assets increased 8.80% YoY to 17038.75 lakh while total segment liabilities fell 19.68% to 2774.05 lakh.
Key concerns
- Revenue declined 3.44% YoY to 3224.75 lakh and 29.47% QoQ, with no volume or realisation disclosure to establish the growth driver.
- Raw material cost increased to 51.89% of revenue from 40.05% YoY, while employee cost intensity rose to 27.75% from approximately 26.24%.
Earnings quality: includes non-operating other income
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