AGI Greenpac Q1 FY27 Results (NSE: AGI)
Signal: Margin pressure
The read
Q1FY27 revenue growth accelerated to +14% YoY, a clear improvement over the flat-to-negative sales seen in Q2-Q3FY26, but EBITDA margin contracted 230bps YoY to 23.4%, the second consecutive quarter of compression, as power & fuel costs (+210bps to 22.1% of revenue) overwhelmed raw material relief and employee cost discipline. PAT of ₹99.4 Cr included a ₹4.36 Cr one-off gain from sale of investment property, without which core profit growth would have been ~7.5% YoY. The greenfield MP plant capacity expansion (500 TPD by March 2027) and aluminium beverage can launch (by Dec 2027) remain visible catalysts but near-term margin headwinds persist.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹785.27 Cr | 14.2% | 5.8% |
| EBIT | ₹129.27 Cr | 9.7% | |
| Net profit | ₹99.35 Cr | 11.8% | |
| EPS | ₹15.36 | 11.9% | |
| EBIT margin | 23.4% |
P&L walk
Revenue grew 14.2% YoY aided by volume and property gain; EBITDA margin contracted 230bps YoY to 23.4%, the second consecutive quarter of compression, as power and fuel costs surged 25.4% YoY and absorbed much of the input cost relief (raw material % down 150bps). The margin was further supported by a single. However, packaging segment margin fell to 19.3% from 22.2% a year ago, indicating core profitability pressure outside investment property income.
Segments
Packaging products revenue +14.3% YoY but segment result margin fell to 19.3% from 22.2% — core profitability eroded by power & fuel cost inflation. Investment property contributed ₹8.52 Cr segment profit, boosted by one-off ₹4.36 Cr gain on sale.
Key positives
- Revenue growth of 14.2% YoY — strongest quarterly growth in recent history (Q4FY26 +5.3%, Q3FY26 -3.6%).
- Finance cost down 42.2% YoY to ₹9.86 Cr, reflecting deleveraging (D/E 0.1x).
- Raw material cost as % of revenue improved 150bps YoY to 26.5%.
- EPS of ₹15.36 (+11.9% YoY) despite margin contraction, aided by lower finance cost and one-off gain.
Key concerns
- EBITDA margin contracted 230bps YoY — the second consecutive quarter of compression (Q4FY26 also contracted).
- Power and fuel costs surged 25.4% YoY, absorbing 210bps more of revenue (22.1% vs 20.0%).
- Core packaging segment margin fell to 19.3% from 22.2% YoY — the lowest since Q1FY26 (19.8% in Q2FY25?).
- Other income included a one-off ₹4.36 Cr gain on sale of investment property; adjusting for this, PAT growth would be ~7.5% YoY.
- Employee cost grew 10.2% YoY, though slower than revenue.
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