Beekay Steel Ind Q1 FY27 Results (NSE: BEEKAY)
Signal: Growth reaccelerated
The read
The operating inflection is significant: revenue rose 32.5% YoY and EBITDA margin reached 17.2% after the recent Q4FY26 margin of 7%, driven by an approximately 1030bps gross-margin expansion as raw-material intensity fell to 61.99%; nevertheless, finance cost rose 65.8%, other income was 50.8% of PBT and EPS growth of 144.3% is inconsistent with PAT growth of 22.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹374.71 Cr | 32.5% | +10.7% |
| EBIT | ₹53.82 Cr | 35.6% | |
| Net profit | ₹38.07 Cr | 22.1% | |
| EPS | ₹39.92 | 144.3% | |
| EBIT margin | 17.2% |
P&L walk
Consolidated revenue was 37470.82 lakh, +32.5% YoY, with gross margin expanding to 40.9% from approximately 30.6% as raw-material intensity fell to 61.99% from 70.07%; EBITDA margin was 17.2%, but PAT growth at +22.1% lagged EBIT growth of +35.6% because other income contributed 239.586 lakh and EPS growth of +144.3% does not track PAT.
Segments
The company reports steel and allied products as its only reportable business segment; standalone revenue was identical to consolidated revenue at 37470.82 lakh, while consolidated PAT of 3807.30 lakh was 22.86 lakh below standalone PAT of 3830.16 lakh.
Key positives
- Revenue of 37470.82 lakh grew 32.5% YoY and 10.7% sequentially, reversing the recent Q4FY26 slowdown to 2.7% YoY.
- Gross margin expanded approximately 1030bps YoY as raw-material cost declined to 61.99% of revenue from 70.07%.
- EBITDA margin improved to 17.2% from 6% in Q1FY26 and 7% in Q4FY26, although EBITDA growth of 33.1% was only 0.6pp ahead of revenue growth.
Key concerns
- Finance cost increased 65.8% YoY to 666.20 lakh, materially faster than revenue growth and limiting PAT conversion.
- Other income of 239.586 lakh represented 50.8% of consolidated PBT, reducing the quality and repeatability of reported profit.
- EPS rose 144.3% to ₹39.92 while PAT rose only 22.1% to 3807.30 lakh; the divergence requires reconciliation with the reported share base.
Earnings quality: includes non-operating other income
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