Crompton Gr. Con Q1 FY27 Results (NSE: CROMPTON)
Signal: Steady quarter
The read
The operating trajectory improved from the prior Q1FY27 history of 10% OPM and ₹143 crore PAT: current disclosures point to 11.8% consolidated revenue growth, 14.2% reported EBITDA growth and 15.2% reported PAT growth, but material margin still contracted 100bps to 31.2%, so the thesis depends on pricing, premiumisation and cost actions offsetting input pressure; the XBRL-versus-press-release EBITDA and PAT discrepancies are a material data-quality issue.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,235.02 Cr | 11.8% | N/A |
| EBIT | ₹201.01 Cr | N/A | |
| Net profit | ₹140.48 Cr | 15.2% | |
| EPS | ₹2.18 | 14.7% | |
| EBIT margin | 11% |
P&L walk
Consolidated revenue grew 11.8% YoY to ₹2235.02 crore and the filing stated EBITDA growth of 14.2% with a 20bps margin expansion, while XBRL reports EBITDA of ₹246.24 crore and PAT of ₹140.48 crore; pricing interventions and cost initiatives supported profitability despite a 100bps decline in material margin.
Segments
Momentum was broad-based: Lighting grew 15.4% YoY and Butterfly grew 14.1%, ahead of ECD at 10.6%; the consolidated revenue of ₹2235.02 crore also includes Butterfly's ₹214 crore revenue, while standalone revenue was ₹2022.47 crore.
Key positives
- Consolidated revenue grew 11.8% YoY to ₹2235.02 crore, with all disclosed businesses delivering double-digit growth: ECD +10.6%, Lighting +15.4% and Butterfly +14.1%.
- BLDC fan sales grew approximately 44% and reached the highest quarterly sales level, while five new fans were launched.
- The press release reported EBITDA growth of 14.2% versus revenue growth of 11.8%, with EBITDA margin improving 20bps to 10%; management attributed the outcome to pricing interventions and cost initiatives.
- Premium portfolio momentum supported Butterfly, whose EBITDA margin improved 20bps to 7.0% and PAT margin improved 80bps to 4.2%.
- Solar rooftop and solar pump offerings were expanded to retail markets, creating a new non-tender and B2C growth channel.
Key concerns
- Consolidated material margin declined 100bps YoY to 31.2%, with raw material cost rising to 68.8% of revenue from 67.8%; pricing actions have not yet fully protected gross margin.
- Lighting revenue grew 15.4% YoY, but its EBIT margin contracted 60bps to 12.0%, indicating weaker conversion of growth into segment profitability.
- Management cited supply tightness as a near-term revenue constraint despite reported double-digit growth.
- The filing does not meet the strict operating-leverage test: reported EBITDA growth exceeded revenue growth by only 2.4 percentage points, below the required 10-point gap.
Research and educational content only. Not investment advice.