Meenakshi (I) Q1 FY27 Results (BSE: 544831)
Signal: Revenue declined
The read
The meaningful inflection is core operating recovery rather than the 152.84% PAT surge: Op. EBITDA moved from a ₹0.16 crore loss to ₹1.10 crore profit despite revenue declining 3.14% to ₹32.25 crore, but earnings quality remains weak because ₹7.11 crore of other income represented 93.2% of PBT; tariff uncertainty in the US and slower European demand remain the stated external swing factors.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹32.25 Cr | -3.14% | N/A |
| EBIT | ₹7.73 Cr | N/A | |
| Net profit | ₹7.13 Cr | +152.84% | |
| EPS | ₹6.34 | +152.59% | |
| EBIT margin | 25.5% |
P&L walk
Revenue declined 3.14% YoY to ₹32.25 crore, but core Op. EBITDA improved from a ₹0.16 crore loss to ₹1.10 crore profit; reported PAT rose 152.84% to ₹7.13 crore largely because other income was ₹7.11 crore, equal to 93.2% of PBT.
Key positives
- Core Op. EBITDA turned positive at ₹1.10 crore in Q1FY27 from a ₹0.16 crore loss in Q1FY26, while revenue declined only 3.14% to ₹32.25 crore.
- Management states that corrective measures over the past year are beginning to improve the core garment business, marking a return to positive operating performance.
- EPS rose 152.59% to ₹6.34, broadly matching PAT growth of 152.84% and indicating no material dilution impact.
Key concerns
- Reported PAT of ₹7.13 crore was primarily supported by ₹7.11 crore of other income, which represented 93.2% of PBT; core Op. EBITDA was only ₹1.10 crore.
- Operating income declined 3.14% YoY to ₹32.25 crore, and the filing does not provide volume, ASP or order-book data to establish a durable demand recovery.
- Management continues to identify US tariff uncertainty and slower European demand as risks to the export-led apparel business.
Earnings quality: includes non-operating other income
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