Balmer Law. Inv. Q1 FY27 Results (NSE: BLIL)
Signal: Steady quarter
The read
The operating trajectory improved in Q1FY27: revenue grew 9.9% and EBITDA grew 18.3%, reversing the recent Q2FY26 slowdown and Q3FY26 margin contraction, but the benefit did not reach PAT because tax expense rose to 2203.58 lakh and finance costs increased sharply to 1283.52 lakh; earnings remain concentrated in the subsidiaries rather than the standalone parent.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹751.14 Cr | 9.9% | N/A |
| EBIT | ₹92.99 Cr | 15.1% | |
| Net profit | ₹45.49 Cr | 1.9% | |
| EPS | ₹2.05 | 2.0% | |
| EBIT margin | 15% |
P&L walk
Revenue increased to 75114.18 lakh (+9.9% YoY), with EBITDA growing faster at +18.3% and margin reaching 15%; however, PAT rose only 1.9% to 4548.97 lakh as tax expense increased to 2203.58 lakh.
Segments
Industrial Packaging was the principal growth engine, with revenue up 27.7% to 30865.77 lakh and result up 48.9% to 3115.26 lakh; Travel & Vacations also grew 17.2% with result up 25.9%, while Greases & Lubricants dragged with revenue down 29.6% and result down 53.1%.
Key positives
- Consolidated revenue reached 75114.18 lakh, up 9.9% YoY, accelerating from 4.1% growth in Q3FY26.
- EBITDA grew 18.3% to 11267 lakh versus revenue growth of 9.9%, and EBITDA margin expanded to 15% from 13% a year earlier.
- Industrial Packaging revenue increased 27.7% to 30865.77 lakh and segment result increased 48.9% to 3115.26 lakh.
- Raw material cost declined to 66.0% of revenue from approximately 69.9%, supporting an approximately 390bps gross-margin expansion.
Key concerns
- PAT rose only 1.9% to 4548.97 lakh despite EBITDA growth of 18.3%, as tax expense increased to 2203.58 lakh.
- Finance costs rose to 1283.52 lakh, materially higher than the year-ago 181.?? lakh, reducing conversion of operating profit into PBT.
- Greases & Lubricants revenue declined 29.6% to 11509.76 lakh and segment result fell 53.1% to 930.81 lakh.
- Standalone PAT declined 15.8% to 165.34 lakh, highlighting the parent company's dependence on subsidiary and associate earnings.
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