Agarwal Indl. Q1 FY27 Results (NSE: AGARIND)
Signal: Revenue declined
The read
The quarter shows a mixed trajectory: consolidated EBITDA margin improved to 7.5% despite revenue falling 27.0% YoY, but standalone gross margin compressed to 10.5% and standalone PAT relied on other income equal to 39.4% of PBT; the core recovery therefore remains unproven until revenue and parent-level margins stabilise.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹433.31 Cr | -27.0% | N/A |
| EBIT | ₹18.78 Cr | -24.7% | |
| Net profit | ₹10.35 Cr | -20.6% | |
| EPS | ₹6.92 | -20.6% | |
| EBIT margin | 7.5% |
P&L walk
Consolidated revenue fell 27.0% YoY to ₹433.31 Cr, while EBITDA declined a slower 13.8% to ₹32.61 Cr and EBITDA margin reached 7.5%; lower finance costs partly cushioned the operating decline, but PAT still fell 20.6% to ₹10.35 Cr and included other income equal to 20.3% of PBT.
Segments
The petroleum-vessel segment was the key relative contributor, with revenue up 19.1% YoY to ₹8,545.52 lakh and result at ₹620.51 lakh, while logistics dragged with a ₹52.51 lakh loss; subsidiaries also lifted the group as consolidated revenue declined 27.0% versus standalone revenue declining 33.8%.
Key positives
- Consolidated EBITDA margin reached 7.5% while revenue declined 27.0% YoY, as EBITDA fell 13.8% versus the 27.0% revenue decline.
- Consolidated gross margin expanded to 27.5% from 20.2% YoY, a 730bps improvement, although management did not disclose whether this reflected pricing, input costs or mix.
- Petroleum-vessel revenue increased 19.1% YoY to ₹8,545.52 lakh and generated segment profit of ₹620.51 lakh.
- Finance costs declined 37.4% YoY to ₹519.82 lakh, cushioning the 24.7% decline in EBIT.
Key concerns
- Standalone revenue fell 33.8% YoY to ₹337.04 Cr and standalone EBITDA margin was only 5.1%, materially weaker than the consolidated 7.5%.
- Standalone gross margin compressed 370bps YoY to 10.5% as direct cost intensity increased to 89.5% of revenue from 85.8%.
- Logistics moved to a ₹52.51 lakh segment loss from a ₹27.47 lakh profit YoY, while wind-mill loss widened to ₹0.33 lakh from ₹0.245 lakh profit.
Earnings quality: includes non-operating other income
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