Bhartiya Intl. Q1 FY27 Results (NSE: BIL)
Signal: Growth reaccelerated
The read
The quarter shows a consolidated earnings inflection: revenue grew 33.16% YoY and gross margin expanded 1326bps, but operating margin improved only 17bps to 10.17%; the more material PAT recovery to ₹1776.27 lakh came from the associate turnaround and a favorable consolidated mix, while standalone gross margin fell 357bps and finance costs rose 17.47% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹372.8 Cr | +33.16% | +19.21% |
| Net profit | ₹17.76 Cr | +218.14% | |
| EPS | ₹13.21 | +210.09% | |
| EBIT margin | 10.17% |
P&L walk
Consolidated revenue from operations increased to ₹37279.52 lakh, +33.16% YoY and +19.21% QoQ; gross margin expanded to 44.23% from 30.97% YoY, while operating margin improved only 17bps YoY to 10.17%; PAT rose 218.14% YoY mainly alongside the associate turnaround from a ₹125.48 lakh loss to a ₹123.72 lakh profit.
Segments
The group contributed ₹1776.27 lakh of PAT versus standalone PAT of ₹1532.65 lakh, a ₹243.62 lakh uplift driven primarily by the associate contribution turning positive at ₹123.72 lakh from a ₹125.48 lakh loss YoY; no segment split is disclosed.
Key positives
- Consolidated revenue from operations reached ₹37279.52 lakh, +33.16% YoY and +19.21% QoQ, sustaining the recent high-growth trajectory.
- Consolidated gross margin expanded 1326bps YoY to 44.23%, with materials, purchases and inventory changes falling to 55.77% of revenue from 69.03%.
- Associate earnings turned from a ₹125.48 lakh loss to a ₹123.72 lakh profit, supporting the consolidated PAT recovery to ₹1776.27 lakh.
- Consolidated finance-cost intensity declined to 3.17% of revenue from 4.15% YoY as finance costs grew only 1.65% versus revenue growth of 33.16%.
Key concerns
- Standalone gross margin contracted 357bps YoY to 51.88%, indicating that the consolidated gross-margin improvement is not replicated in the parent business.
- Consolidated operating margin was 10.17%, only 17bps above the year-ago level despite a 1326bps gross-margin expansion, implying pressure below gross profit.
- Standalone finance costs increased 17.47% YoY to ₹1903.94 lakh and rose 48.59% sequentially to ₹1903.94 lakh.
- The quarter's consolidated PAT improvement was partly dependent on the associate turnaround from a ₹125.48 lakh loss to a ₹123.72 lakh profit.
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