A B Lifestyle Q1 FY27 Results (NSE: ABLBL)
Signal: Steady quarter
The read
ABLBL sustained its growth momentum with 3rd consecutive quarter of double-digit revenue growth (+11% YoY). EBITDA margin expanded 50bps to 16.0% on operating leverage and sharp improvement in emerging business profitability (EBITDA +170%, margin +240bps). However, gross margin compressed ~160bps on higher input costs, and other income comprised 47% of PBT, tempering core earnings quality. PAT grew 21% YoY to ₹29.02 Cr. The sequential revenue decline is seasonal (Q4 typically higher).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,045.74 Cr | 11.1% | -5.9% |
| EBIT | ₹122.42 Cr | 8.2% | |
| Net profit | ₹29.02 Cr | 20.6% | |
| EPS | ₹0.24 | 20.0% | |
| EBIT margin | 5.98% |
P&L walk
Revenue grew 11% YoY, third quarter of double-digit growth; EBITDA margin expansion of 50bps driven by operating leverage partly offsetting gross margin compression (~160bps) from higher input costs; PAT up 21% but other income comprised 47% of PBT.
Key positives
- 3rd consecutive quarter of double-digit revenue growth (+11% YoY).
- EBITDA margin expanded 50bps YoY to 16.0% on operating leverage.
- Emerging business revenue +19% YoY, EBITDA jumped 170% with margin up 240bps to 4.3%.
- Retail LTL of 8% (lifestyle 7%, emerging 11%) – 7th consecutive quarter of positive LTL.
- E-commerce grew >20% YoY on a healthier platform.
Key concerns
- Gross margin compressed ~160bps YoY (61.0% vs 62.6%), driven by higher input costs.
- Other income constituted 47.1% of consolidated PBT (₹18.46 Cr vs PBT ₹39.17 Cr), inflating bottom-line quality.
- EBIT margin slipped 17bps YoY to 5.98% despite EBITDA margin improvement, due to higher depreciation.
- Sequential revenue declined 5.9% QoQ (seasonal but still a drop from Q4FY26 levels).
Earnings quality: includes non-operating other income
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