Bharat Rasayan Q1 FY27 Results (NSE: BHARATRAS)
Signal: Revenue declined
The read
The quarter shows sequential revenue recovery to ₹33,816 lakh from ₹30,802 lakh, but operating momentum weakened versus last year: consolidated operating margin fell 378bps to 14.91% and standalone PAT fell 16.1% to ₹3,664 lakh; the apparent group resilience is partly non-operating because the JV's ₹59 lakh contribution included a ₹6.64 crore FX gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹338.16 Cr | -10.4% | +9.8% |
| Net profit | ₹37.23 Cr | -6.1% | |
| EPS | ₹22.4 | -6.1% | |
| EBIT margin | 14.91% |
P&L walk
Revenue declined 10.4% YoY to ₹33,816 lakh but recovered 9.8% sequentially; gross margin was broadly stable at approximately 35.3% versus 35.8% YoY, while operating margin contracted to 14.91% from 18.69% and PAT declined 6.1% to ₹3,723 lakh, partly cushioned by a ₹59 lakh JV contribution.
Segments
The business is reported as a single pesticides segment; consolidated PAT of ₹3,723 lakh exceeded standalone PAT of ₹3,664 lakh because of the ₹59 lakh JV contribution, although the JV's ₹1.97 crore PAT included a ₹6.64 crore foreign-exchange gain.
Key positives
- Consolidated revenue recovered 9.8% QoQ to ₹33,816 lakh from ₹30,802 lakh, although it remained 10.4% below ₹37,740 lakh YoY.
- Finance cost declined 13.6% YoY to ₹102 lakh and debt-equity remained low at 0.06x.
- EPS declined 6.1% in line with PAT, indicating no evidence of dilution-driven earnings divergence.
- Consolidated net worth increased to ₹1,31,169.36 lakh from ₹1,16,968.15 lakh YoY.
Key concerns
- Operating margin contracted 378bps YoY to 14.91% from 18.69%, while revenue declined 10.4% YoY to ₹33,816 lakh.
- Standalone PAT fell 16.1% YoY to ₹3,664 lakh, materially worse than the 6.1% consolidated decline to ₹3,723 lakh.
- Inventory turnover declined to 3.67x from 5.13x YoY, indicating slower inventory throughput.
- Employee and other expenses increased 12.6% YoY to ₹6,486 lakh despite the 10.4% revenue decline.
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