Andhra Cements Q1 FY27 Results (NSE: ACL)
Signal: Loss widened
The read
The key inflection is a return to loss: despite revenue of ₹14,217 lakh growing 42.8% YoY, EBITDA fell 25.8% to ₹493 lakh and margin compressed 320bps to 3.5%; lower raw-material intensity did not offset the ₹1,611 lakh inventory change, 60.7% freight growth and ₹3,194 lakh finance cost.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹142.17 Cr | +42.8% | -8.2% |
| EBIT | ₹-15.83 Cr | -56.2% | |
| Net profit | ₹-35.93 Cr | -21.3% | |
| EPS | ₹-3.9 | -21.5% | |
| EBIT margin | 3.5% |
P&L walk
Revenue grew to ₹14,217 lakh, up 42.8% YoY but down 8.2% QoQ; gross margin compressed to 76.2% from 85.8% YoY, EBITDA fell 25.8% YoY to ₹493 lakh, and PAT was a ₹3,593 lakh loss versus a ₹2,962 lakh loss last year.
Key positives
- Revenue reached ₹14,217 lakh, up 42.8% YoY, while employee cost rose only 11.5% and power and fuel expense rose 19.3%, both below revenue growth.
- Raw-material cost declined to 12.5% of revenue from 14.0% YoY, although gross margin still compressed 958bps because of the inventory-change line and other cost pressures.
- The limited review report carried an unmodified conclusion.
Key concerns
- EBITDA declined 25.8% YoY to ₹493 lakh and EBITDA margin fell 320bps to 3.5% despite 42.8% revenue growth.
- Freight and forwarding expense rose 60.7% YoY to ₹3,355 lakh, faster than revenue, raising freight intensity to 23.6%.
- Finance costs rose 55.5% YoY to ₹3,194 lakh, equal to 22.5% of revenue and a major drag on PBT.
- The company reported a ₹3,593 lakh net loss after a ₹2,962 lakh loss last year, indicating that revenue growth is not yet converting into earnings.
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