Aastha Spintex Q1 FY27 Results (NSE: AASTHA)
Signal: Margin expansion
The read
The key inflection is a 528bps YoY gross-margin recovery to 18.1% after the FY26 Q4 margin collapse highlighted in prior context, but the recovery is not yet durable: revenue fell 15.7% YoY and 45.2% QoQ, EBITDA margin declined 180bps sequentially to 12.5%, and FY26 PAT had grown only 1.0% despite 26.0% FY revenue growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹77.47 Cr | -15.7% | -45.2% |
| EBIT | ₹7.76 Cr | N/A | |
| Net profit | ₹3.09 Cr | +35.6% | |
| EPS | ₹0.98 | +27.3% | |
| EBIT margin | 12.5% |
P&L walk
Standalone revenue fell to ₹7746.88 lakh, down 15.7% YoY and 45.2% QoQ, but gross margin expanded 528bps YoY to 18.1%; EBITDA margin reached 12.5%, while PAT rose 35.6% YoY to ₹309.28 lakh despite lower operating scale.
Key positives
- Gross margin was 18.1%, expanding 528bps YoY from 12.8%; the filing's direct-cost lines support a meaningful profitability recovery, although management does not disclose the driver.
- EBITDA margin improved 440bps YoY to 12.5%, and PAT rose 35.6% YoY to ₹309.28 lakh despite revenue declining 15.7% YoY.
- Finance costs declined 13.8% QoQ to ₹294.37 lakh, partially offsetting the sequential revenue contraction.
Key concerns
- Revenue declined 15.7% YoY to ₹7746.88 lakh and 45.2% QoQ, indicating that the margin recovery has not translated into demand or scale momentum.
- Gross margin declined 119bps sequentially from approximately 19.3%, so the 528bps YoY improvement may be partly a base effect after the weak Q4.
- Finance costs increased 17.0% YoY while revenue declined 15.7% YoY, raising finance-cost intensity to 3.8% of revenue.
- The filing discloses no yarn volumes, realisations, capacity utilisation, order book or cash-flow data, limiting assessment of whether the revenue decline is volume- or price-led.
Research and educational content only. Not investment advice.