AVT Natural Prod Q1 FY27 Results (NSE: AVTNPL)
Signal: Margin expansion
The read
The operating inflection is positive: consolidated EBITDA grew 124.9% versus revenue growth of 82.2%, expanding margin by 640bps to 18.4% after the Q3FY26 contraction, with employee, depreciation and finance costs growing only 11.3%, 7.1% and 14.1%; the counter-signal is gross-margin compression to 47.9% from 55.4% as the disclosed direct-cost basket rose to 52.1% of revenue from 44.6%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹241.21 Cr | 82.2% | +6.5% |
| EBIT | ₹41.29 Cr | 145.6% | |
| Net profit | ₹31.1 Cr | 156.6% | |
| EPS | ₹2.04 | 155.0% | |
| EBIT margin | 18.4% |
P&L walk
Consolidated revenue increased to ₹24,121.46 lakh (+82.2% YoY, +6.5% QoQ), while EBITDA grew 124.9% and margin expanded to 18.4% from 12.0% YoY; PAT growth to ₹3,110.05 lakh (+156.6%) tracked the operating improvement rather than other income, which grew only 16.3%.
Segments
Segment reporting is not applicable because solvent-extracted products are the primary reportable segment; however, consolidated PAT of ₹3,110.05 lakh exceeded standalone PAT of ₹2,386.65 lakh, indicating a material ₹723.40 lakh contribution from subsidiaries and consolidation adjustments.
Key positives
- Consolidated revenue reached ₹24,121.46 lakh, up 82.2% YoY, extending the growth recovery from ₹13,242.00 lakh in Q1FY26.
- EBITDA grew 124.9% versus revenue growth of 82.2%, a +42.7pp gap, while EBITDA margin expanded 640bps to 18.4%.
- Employee costs grew only 11.3% YoY, depreciation 7.1% and finance cost 14.1%, providing clear fixed-cost absorption support for margin expansion.
- PAT rose 156.6% to ₹3,110.05 lakh while other income grew only 16.3%, indicating that earnings growth was primarily operational.
- EPS rose 155.0% to ₹2.04, broadly tracking PAT and passing the dilution cross-check.
Key concerns
- The direct-cost basket rose to 52.1% of consolidated revenue from 44.6% YoY, compressing gross margin by approximately 750bps; revenue grew 82.2% while the direct-cost basket grew approximately 112.8%, implying incomplete cost pass-through or adverse inventory/mix effects.
- Consolidated finance cost increased 14.1% YoY to ₹223.84 lakh despite strong growth, requiring monitoring of funding intensity as the business scales.
- The filing notes that quarterly results are affected by sector seasonality and are not indicative of full-year performance.
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