Chamanlal Setia Q1 FY27 Results (NSE: CLSEL)
Signal: Margin expansion
The read
The key inflection is margin-led earnings acceleration: revenue grew 12.58% YoY to ₹34591.95 lakh, but EBITDA grew 55.57% to ₹4578 lakh and EBITDA margin expanded 362bps to 13.2% because employee costs grew only 8.05%, depreciation 21.38% and finance costs declined 5.26%; the main limitation is that volume, realisation and capex details were not disclosed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹345.92 Cr | +12.58% | -19.24% |
| EBIT | ₹44.51 Cr | N/A | |
| Net profit | ₹31.99 Cr | +47.77% | |
| EPS | ₹6.44 | +48.05% | |
| EBIT margin | 13.2% |
P&L walk
Revenue grew 12.58% YoY but fell 19.24% QoQ; gross margin expanded 52bps YoY, EBITDA grew 55.57% versus revenue growth of 12.58% as employee costs rose 8.05%, depreciation 21.38% and finance costs fell 5.26%, while PAT grew 47.77% with other income broadly flat.
Key positives
- EBITDA grew 55.57% YoY to ₹4578 lakh versus revenue growth of 12.58%, a 42.99 percentage-point growth gap, with EBITDA margin expanding 362bps to 13.2%.
- Employee benefits grew 8.05% YoY to ₹518.61 lakh versus revenue growth of 12.58%, while finance costs declined 5.26% to ₹175.90 lakh, supporting fixed-cost absorption.
- Gross margin expanded 52bps YoY to 25.36% as raw materials, purchases and inventory change declined to 74.64% of revenue from 75.15%.
Key concerns
- Revenue declined 19.24% QoQ from ₹42836.99 lakh to ₹34591.95 lakh, and PAT declined 16.38% QoQ from ₹3826.50 lakh to ₹3198.73 lakh.
- The filing does not disclose rice volumes, realisations, export mix, capacity utilisation or working-capital metrics, limiting assessment of whether the 12.58% YoY revenue growth is volume- or price-led.
Research and educational content only. Not investment advice.