Cheviot Company Q1 FY27 Results (NSE: CHEVIOT)
Signal: Steady quarter
The read
The operating trajectory is mixed: revenue reached ₹17,055.16 lakh, +42.5% YoY, while gross margin contracted 1,628bps to 32.2% as raw material cost rose to 68.6% of revenue from 55.9%; PAT of ₹4,529.15 lakh, +57.7%, was materially aided by ₹3,638.60 lakh of other income, so the earnings inflection is not yet supported by core margin expansion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹170.55 Cr | +42.5% | +21.3% |
| EBIT | ₹55.53 Cr | N/A | |
| Net profit | ₹45.29 Cr | +57.7% | |
| EPS | ₹77.53 | +57.7% | |
| EBIT margin | 33.7% |
P&L walk
Revenue increased to ₹17,055.16 lakh, +42.5% YoY and +21.3% QoQ, but gross margin fell to 32.2% from 48.5% as material and inventory costs rose faster than sales; PAT of ₹4,529.15 lakh was supported materially by ₹3,638.60 lakh of other income.
Key positives
- Revenue from operations was ₹17,055.16 lakh, up 42.5% YoY and 21.3% QoQ, indicating strong reported top-line momentum.
- Employee benefits plus other expenses fell 11.4% YoY to ₹3,379.21 lakh despite revenue growth of 42.5%, supporting operating profitability below gross profit.
- EPS of ₹77.53 tracked PAT growth of 57.7% YoY, with no disclosed dilution divergence.
Key concerns
- Gross margin fell 1,628bps YoY to 32.2% as raw material cost increased to 68.6% of revenue from 55.9%, indicating significant input-cost absorption.
- Other income of ₹3,638.60 lakh represented 65.7% of PBT, making the ₹4,529.15 lakh PAT less representative of recurring operating earnings.
- Revenue growth was not accompanied by disclosed volume data, preventing confirmation that growth was volume-led rather than price/mix-led.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.