Bafna Pharma. Q1 FY27 Results (NSE: BAFNAPH)
Signal: Revenue declined
The read
The key inflection is a sharp operational deterioration: revenue fell 23.2% YoY to ₹2,658.32 lakh, gross margin contracted 313bps to 46.2% as raw-material intensity rose to 53.8%, EBITDA fell 50.7% to ₹279.00 lakh, and PAT of ₹7.51 lakh was mostly overwhelmed by ₹191.10 lakh of other income relative to ₹7.51 lakh of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹26.58 Cr | -23.2% | -37.1% |
| EBIT | ₹1.01 Cr | -76.5% | |
| Net profit | ₹0.08 Cr | -97.6% | |
| EPS | ₹0.03 | -97.9% | |
| EBIT margin | 10.5% |
P&L walk
Revenue declined to ₹2,658.32 lakh, -23.2% YoY and -37.1% QoQ, while gross margin compressed to 46.2% from 49.3% YoY; EBITDA fell 50.7% to ₹279.00 lakh, depreciation rose 30.0% to ₹178.07 lakh, and PAT fell 97.6% to ₹7.51 lakh.
Key positives
- Finance cost declined 8.9% QoQ to ₹93.70 lakh, providing limited sequential relief despite the weak quarter.
- EPS of ₹0.03 broadly tracked the 97.6% YoY PAT decline, with no dilution signal from the reported figures.
Key concerns
- Revenue declined 23.2% YoY to ₹2,658.32 lakh and 37.1% QoQ, with no volume or price/mix explanation disclosed.
- Gross margin compressed 313bps YoY to 46.2% as raw-material cost increased to 53.8% of revenue from 50.7%; the filing does not disclose the cause.
- EBITDA fell 50.7% YoY to ₹279.00 lakh and EBITDA margin declined 510bps to 10.5%, while employee costs remained nearly flat YoY at ₹561.63 lakh.
- PAT fell 97.6% YoY to ₹7.51 lakh despite ₹191.10 lakh of other income, making the reported bottom line economically weak.
Earnings quality: includes non-operating other income
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