Belrise Industri Q1 FY27 Results (NSE: BELRISE)
Signal: Steady quarter
The read
The key inflection is weaker earnings conversion: consolidated revenue grew 12.6% YoY, but EBITDA rose only 0.7% and margin was 12.2%, after raw-material intensity increased 437bps to 67.7% of revenue; PAT growth of 9.1% was supported by a 41.9% decline in finance costs, while QIP dilution pushed EPS down 8.7%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,546.47 Cr | 12.6% | -0.2% |
| EBIT | ₹212.86 Cr | -3.1% | |
| Net profit | ₹121.67 Cr | 9.1% | |
| EPS | ₹1.37 | -8.7% | |
| EBIT margin | 12.2% |
P&L walk
Revenue rose to 25,464.68 million, +12.6% YoY and -0.2% QoQ, but gross margin compressed as raw-material cost increased to 67.7% of revenue from 63.3% a year earlier; EBITDA was 311.65 Cr, +0.7% YoY, while PAT reached 1,216.67 million, +9.1% YoY, helped by sharply lower finance costs.
Segments
The filing identifies only one operating segment, Automotive Components; consolidated revenue of 25,464.68 million exceeded standalone revenue of 20,882.78 million, while consolidated EBITDA margin of 12.2% trailed standalone margin of 13.7%, indicating subsidiary drag on group profitability.
Key positives
- Consolidated revenue increased 12.6% YoY to 25,464.68 million, while standalone revenue grew faster at 16.1% YoY to 20,882.78 million.
- Finance costs declined 41.9% YoY on a consolidated basis to 464.84 million, helping PAT grow 9.1% despite EBITDA growth of only 0.7%.
- The company expanded into aerospace, aviation, space and defence precision engineering through the Chester Hall acquisition and agreed to acquire Hyva India's tipper body business for approximately USD 5.65 million.
Key concerns
- Gross margin compressed 437bps YoY as raw-material cost rose to 67.7% of consolidated revenue from 63.3%, indicating cost pressure or inadequate pass-through.
- Employee costs increased 41.9% YoY versus 12.6% revenue growth, preventing EBITDA margin expansion.
- EPS declined 8.7% YoY to ₹1.37 despite 9.1% PAT growth because of the QIP share issuance.
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