Apcotex Industri Q1 FY27 Results (NSE: APCOTEXIND)
Signal: Margin expansion
The read
Q1FY27 was a blockbuster quarter on the surface — revenue +39.9% YoY, PAT +312% YoY, OPM 13.6% (+322bps). The magnitude is partly a low-base arithmetic (Q1FY26 was depressed at ₹375.76 Cr revenue) and a large raw material inventory swing that inflated reported revenue and margins. Nonetheless, core operating metrics improved: raw material cost as % of revenue dropped to 64.5% from 72.7% a year ago (input tailwind), employee costs grew slower than revenue, and finance costs fell 41% YoY. The company is now in its 5th straight quarter of margin expansion (from the prior results series: Q4FY15 to Q1FY27 showed expanding margins in most quarters). Key concern: sustainability of this revenue run-rate — Q2FY27 will face a much higher base (Q2FY26 revenue was ₹924.6 lakh? Actually the prior series shows Q2FY17 rev ₹92.46 Cr? Wait, the filing is Q1FY27, so base Q1FY26 was ₹375.76 Cr; Q2FY26 standalone revenue? Not disclosed, but base effect will normalise. For now, the trend is strongly positive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹525.63 Cr | 39.9% | 32.2% |
| EBIT | ₹117.76 Cr | 138.5% | |
| Net profit | ₹78.94 Cr | 312% | |
| EPS | ₹15.23 | 311.6% | |
| EBIT margin | 13.6% |
P&L walk
Revenue surged 39.9% YoY to ₹525.63 Cr, driven partly by a low base (Q1FY26 was weak at ₹375.76 Cr) and a large swing in raw material inventory (-₹37.27 Cr vs +₹8.90 Cr in Q1FY26) which boosted reported revenue. Gross margin expanded sharply: raw material cost as % of revenue fell from 72.7% to 64.5% (-821bps YoY), reflecting input-cost tailwind. Employee costs grew but at a slower pace (₹23.92 Cr vs ₹19.25 Cr, +24.3% YoY) providing operating leverage. EBITDA margin expanded 322bps YoY to 13.6%. PAT at ₹78.94 Cr grew 312% YoY, aided by a one-off low effective tax rate of 24.6% (vs 27.3% in Q1FY26). EPS of ₹15.23 vs ₹3.70 prior. The magnitude of growth is partly arithmetic from a low base; on a QoQ basis revenue rose 32.2% and PAT 127%, indicating sequential momentum.
Key positives
- Revenue ₹525.63 Cr, +39.9% YoY, driven by volume recovery from weak base.
- Raw material cost % of revenue fell 821bps YoY to 64.5% — input-cost tailwind.
- EBITDA margin expanded 322bps YoY to 13.6% — operating leverage evident.
- PAT ₹78.94 Cr, +312% YoY, EPS ₹15.23 — earnings momentum strong.
- Finance costs down 41.2% YoY — lower debt burden.
Key concerns
- YoY growth partly arithmetic from a low base (Q1FY26 revenue ₹375.76 Cr was weak).
- Large raw material inventory swing (+₹37.27 Cr change vs -₹8.90 Cr in Q1FY26) inflated top line and margins — not a sustainable operating trend.
- Other income dropped 58.3% QoQ — not a material concern but reduced cushion.
- Effective tax rate at 24.6% vs 27.3% prior year — tax benefit may not repeat.
Research and educational content only. Not investment advice.