Birla Cable Q1 FY27 Results (NSE: BIRLACABLE)
Signal: Margin expansion
The read
Q1FY27 marks an inflection: revenue surged 51% YoY to ₹266.64 Cr, EBITDA margin expanded from 4.8% to 17.5% – the highest in recent history – driven by a sharp drop in raw material costs (74.3% vs 85.4% of sales) and operating leverage from declining fixed costs. Net profit of ₹30.70 Cr (vs ₹1.36 Cr a year ago) is a record, though an impairment loss of ₹1 Cr and pending amalgamation with Vindhya Telelinks warrant caution. The trajectory is strongly positive but the impending merger makes future comparability uncertain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹266.64 Cr | 51.1% | 24.5% |
| EBIT | ₹43.14 Cr | 932.1% | |
| Net profit | ₹30.69 Cr | 2153% | |
| EPS | ₹10.23 | 2173.3% | |
| EBIT margin | 17.5% |
P&L walk
Revenue grew 51% YoY to ₹266.64 Cr, with raw material costs declining to 74.3% of revenue from 85.4% YoY, and fixed costs (employee, depreciation) declining in absolute terms, driving EBITDA margin from 4.8% to 17.5%. PAT surged ~₹30.7 Cr vs ₹1.4 Cr a year ago, aided by lower finance costs and impairment provisions of ₹1 Cr. EPS of ₹10.23 is a record.
Key positives
- Revenue growth of 51.1% YoY – strongest in at least 5 quarters
- EBITDA margin expanded 12.7pp to 17.5%, driven by raw material cost improvement (74.3% vs 85.4% of revenue) and fixed cost leverage
- Net profit surged 21.5x YoY to ₹30.70 Cr, EPS at ₹10.23
- Finance costs declined 11.8% YoY despite higher revenue, indicating deleveraging
Key concerns
- Impairment loss on financial assets of ₹1 Cr (unlike nil a year ago) suggests credit quality stress
- Amalgamation with Vindhya Telelinks is pending regulatory approvals – creates business structure uncertainty
- QoQ revenue growth of 24.5% is strong but follows a seasonally strong Q4; sustainability to be watched
Research and educational content only. Not investment advice.