Balmer Lawrie Q1 FY27 Results (NSE: BALMLAWRIE)
Signal: Growth decelerated
The read
Q1FY27 results show strong top-line growth and margin expansion, but PAT growth was muted due to a 91% surge in finance costs and higher depreciation. Segment divergence is notable: Industrial Packaging and Travel are powering ahead, while Greases & Lubricants and Others are dragging. The finance cost spike warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹748.73 Cr | 10.0% | 0.6% |
| EBIT | ₹90.76 Cr | 16.2% | |
| Net profit | ₹71.41 Cr | 3.6% | |
| EPS | ₹4.18 | 3.7% | |
| EBIT margin | 12.1% |
P&L walk
Revenue grew 10% YoY, led by Industrial Packaging (+27.7%) and Travel & Vacations (+17.2%), while Greases & Lubricants declined 29.6%. Gross margin expanded 110bps to 35.3%, and EBITDA margin improved 120bps to 14.8% due to lower employee cost ratio and favorable mix. PAT growth was capped at 3.6% as finance costs surged 91% and depreciation rose 36%.
Segments
Industrial Packaging (revenue +27.7%, PBIT +48.9%) and Travel & Vacations (+17.2%, +25.9%) were the key growth drivers. Greases & Lubricants posted a sharp decline (revenue -29.6%, PBIT -53.2%), likely due to lower volumes/pricing. The 'Others' segment (Refinery & Oil Field Services) continued to report a loss of ₹24.32 Cr, widening from ₹21.17 Cr last year.
Key positives
- Revenue grew 10% YoY to ₹748.73 Cr, driven by Industrial Packaging (+27.7%) and Travel & Vacations (+17.2%).
- EBITDA margin expanded 120bps YoY to 14.8%, supported by gross margin improvement and lower employee cost ratio (9.3% vs 10.4%).
- Industrial Packaging segment PBIT jumped 48.9% YoY, indicating strong operational leverage.
- Travel & Vacations segment PBIT increased 25.9% YoY, reflecting robust travel demand.
- Consolidated EPS grew 3.7% to ₹4.18, with no dilution.
Key concerns
- Greases & Lubricants segment revenue declined 29.6% and PBIT dropped 53.2%, signaling demand or pricing headwinds.
- Finance costs surged 90.9% YoY to ₹12.84 Cr, compressing net profit growth.
- Others segment (Refinery & Oil Field Services) remained loss-making at ₹24.32 Cr, worsening from ₹21.17 Cr loss last year.
- PAT growth of only 3.6% lagged revenue growth significantly due to higher finance costs and depreciation.
- Consolidated standalone gap: standalone PAT ₹57.66 Cr vs consolidated PAT ₹71.41 Cr, indicating JV/associate contributions were material.
Research and educational content only. Not investment advice.