Bhagyanagar Ind Q1 FY27 Results (NSE: BHAGYANGR)
Signal: Margin expansion
The read
Q1FY27 consolidated revenue grew 45.2% YoY but declined 4.0% QoQ, while EBITDA margin expanded ~160 bps YoY to 5.5% (5th consecutive quarter of YoY margin expansion). PAT surged 167% YoY to ₹2,024.52 Lakhs. However, the QoQ revenue dip and a GST show cause notice (₹1,750 Lakhs deposited under protest) temper the upside. Earnings quality is solid with PAT-EPS alignment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹705.08 Cr | 45.2% | -4.0% |
| EBIT | ₹39.08 Cr | 103.9% | |
| Net profit | ₹20.25 Cr | 167.3% | |
| EPS | ₹6.33 | 167.1% | |
| EBIT margin | 5.5% |
P&L walk
Consolidated revenue grew 45.2% YoY led by volume gains, though QoQ declined 4%; EBITDA margin improved ~160 bps YoY to 5.5% on lower raw material cost relative to revenue and operating leverage; PAT surged 167% YoY to ₹2,024.52 Lakhs, driven by margin expansion and controlled finance costs; other income plummeted 73.5% but had minimal impact on bottom line.
Key positives
- Revenue growth of 45.2% YoY to ₹70,507.54 Lakhs, continuing strong double-digit expansion.
- EBITDA margin expanded ~160 bps YoY to 5.5%, reflecting operating leverage and stable raw material cost.
- PAT up 167.3% YoY to ₹2,024.52 Lakhs, with EPS at ₹6.33 (up 167.1% YoY).
- PBT margin improved to 3.84% from 2.08% YoY.
Key concerns
- Revenue declined 4.0% QoQ, breaking the sequential growth trend seen in prior quarters.
- Other income collapsed 73.5% YoY to ₹79.01 Lakhs (from ₹297.61 Lakhs), though its impact on PAT is limited.
- GST show cause notice of ₹1,750 Lakhs deposited under protest; outcome uncertain and may crystallise as liability.
- Preferential equity issue (up to Rs 15 Lakh shares at ₹348 per share) may dilute EPS post-allotment.
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