Confidence Petro Q1 FY27 Results (NSE: CONFIPET)
Signal: Margin pressure
The read
The key inflection is continued top-line acceleration without margin recovery: consolidated revenue grew 120.9% YoY to ₹2,34,877 lakh, but EBITDA margin contracted 178bps to 5.97% and gross margin contracted 445bps to 10.70%; this is the fifth consecutive quarter of YoY OPM contraction in the supplied history, with management specifically citing LPG supply uncertainty, price volatility and subdued AutoLPG demand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,348.77 Cr | +120.9% | +101.8% |
| EBIT | ₹101.71 Cr | +127.7% | |
| Net profit | ₹60.79 Cr | +213.4% | |
| EPS | ₹1.83 | +215.5% | |
| EBIT margin | 5.97% |
P&L walk
Revenue increased to ₹2,34,877 lakh, +120.9% YoY and +101.8% QoQ, but gross margin compressed 445bps YoY to 10.70% and EBITDA grew only 70.1% to ₹14,029 lakh versus revenue growth of 120.9%; the filing attributes the operating pressure to Middle East conflict-driven LPG supply uncertainty, price volatility and subdued AutoLPG performance.
Segments
No segment results table was disclosed; standalone PAT of ₹6,255 lakh was only ₹176 lakh above consolidated PAT of ₹6,079 lakh, indicating limited net earnings contribution from subsidiaries, associates and joint ventures.
Key positives
- Consolidated revenue reached ₹2,34,877 lakh, +120.9% YoY and +101.8% QoQ, extending the company’s high-growth trajectory.
- Consolidated EBIT rose 127.7% YoY to ₹10,171 lakh, while finance costs increased only 8.1% YoY to ₹2,031 lakh.
- EPS rose 215.5% YoY to ₹1.83 and tracked PAT growth, with no material PAT-to-EPS dilution signal.
- The filing states that bulk supply was strategically prioritised because it delivers higher margins, which could support mix improvement if LPG availability and pricing normalise.
Key concerns
- Gross margin fell 445bps YoY to 10.70% and EBITDA margin fell 178bps to 5.97%, extending the recent margin-contraction pattern despite 120.9% revenue growth.
- AutoLPG performance was subdued because higher prices and lower availability affected demand, according to the filing.
- EBITDA growth of 70.1% lagged revenue growth of 120.9%, showing weak incremental profit conversion rather than operating leverage.
- Standalone cost structure also deteriorated, with EBITDA margin down 189bps YoY to 6.10% despite standalone revenue growth of 116.6%.
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