Albert David Q1 FY27 Results (NSE: ALBERTDAVD)
Signal: Margin expansion
The read
The operating rebound is real at the revenue line—₹10,133.55 lakh, +19.0% YoY—but gross margin compressed 660bps to 63.7%, while the 38.1% EBITDA margin and 303.1% PAT growth were substantially lifted by ₹2,796.23 lakh of other income, equal to 78.1% of PBT; sustainability therefore depends on core pharmaceutical profitability rather than this quarter's reported earnings peak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹101.34 Cr | +19.0% | +43.0% |
| EBIT | ₹36.31 Cr | N/A | |
| Net profit | ₹32 Cr | +303.1% | |
| EPS | ₹56.07 | +303.1% | |
| EBIT margin | 38.1% |
P&L walk
Revenue was ₹10,133.55 lakh, +19.0% YoY and +43.0% QoQ, but gross margin fell to 63.7% from 70.3% as material costs rose faster than sales; EBITDA margin expanded to 38.1% mainly because other income reached ₹2,796.23 lakh, or 78.1% of PBT, making the ₹3,199.78 lakh PAT rebound lower quality.
Key positives
- Revenue reached ₹10,133.55 lakh, +19.0% YoY and +43.0% QoQ, reversing the ₹2,143.44 lakh loss reported in Q4FY26.
- Employee benefits declined 9.8% YoY to ₹2,565.24 lakh despite 19.0% revenue growth, reducing employee-cost intensity to 25.3% of revenue from approximately 33.4%.
Key concerns
- Gross margin compressed 660bps YoY to 63.7%, with cost of materials consumed rising to 18.7% of revenue from 15.6%; the filing does not disclose a cause or evidence of pricing pass-through.
- Other income rose 275.0% YoY to ₹2,796.23 lakh and represented 78.1% of PBT, making the ₹3,199.78 lakh PAT and ₹56.07 EPS less representative of recurring operating earnings.
Earnings quality: includes non-operating other income
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