Butterfly Gan Ap Q1 FY27 Results (NSE: BUTTERFLY)
Signal: Steady quarter
The read
Revenue growth of 14.1% YoY is solid, but the bottom line was significantly boosted by a 67% jump in other income (now 26.8% of PBT). Excluding that, operating profit growth would be lower. The company continues to benefit from low debt and falling finance costs. Margins are stable but not showing operational leverage. The key risk is reliance on non-operating income for earnings growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹213.87 Cr | 14.1% | -2.0% |
| EBIT | ₹12.14 Cr | 29.1% | |
| Net profit | ₹8.89 Cr | 38.3% | |
| EPS | ₹4.97 | 38.1% | |
| EBIT margin | 8.5% |
P&L walk
PAT growth of 38.3% was driven by strong revenue growth (+14.1% YoY), a sharp decline in finance costs (-70.4%), and higher other income (+67%), partially offset by a slight increase in employee cost ratio. EBITDA margin expanded 64 bps to 8.5% but the improvement was not from operating leverage (EBITDA growth +23.7% vs revenue +14.1%, gap <10pp) and instead reflects lower interest and higher other income.
Key positives
- Revenue grew 14.1% YoY to ₹213.87 Cr, maintaining double-digit growth.
- PAT increased 38.3% YoY to ₹8.89 Cr, with EPS rising to ₹4.97.
- Finance costs dropped 70.4% YoY to ₹0.21 Cr on negligible debt.
- EBITDA margin expanded 64 bps YoY to 8.5%.
Key concerns
- Other income (₹3.20 Cr) accounted for 26.8% of PBT, masking core operating performance.
- QoQ revenue declined 2.0%, suggesting potential seasonality or demand softness.
- Employee cost as % of revenue increased to 14.9% from 14.2% a year ago.
Earnings quality: includes non-operating other income
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