Dhampur Bio Q1 FY27 Results (NSE: DBOL)
Signal: Growth reaccelerated
The read
Q1FY27 headline PAT of ₹36.79 Cr is deceptive — it is entirely driven by a ₹63.89 Cr exceptional gain from the Meerganj slump sale. Underlying operations remain weak with a 2% OPM and a loss before extraordinary items. Revenue growth is modest at 8.3% YoY, and margins are contracting from Q4's seasonal peak. The core sugar/ethanol business is still under pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹303 Cr | 8.3% | N/A |
| Net profit | ₹36.79 Cr | 267.2% | |
| EPS | ₹5.54 | ||
| EBIT margin | 2% |
P&L walk
Revenue grew 8.3% YoY to ₹303 Cr, but operating margin remained flat at 2% (neutral vs YoY, contracting sequentially from Q4FY26's 21%). The ₹63.89 Cr gain on sale of Meerganj unit (£305 Cr slump sale) lifted other income and drove net profit to ₹36.79 Cr vs a loss of ₹22 Cr in Q1FY26. Excluding the exceptional gain, underlying operations are loss-making (PAT before exceptional is negative). EPS rose to ₹5.54 from ₹0.02; the comparison is distorted by the prior-year loss base.
Key positives
- Revenue grew 8.3% YoY to ₹303 Cr, driven by improved realisations.
- Exceptional gain of ₹63.89 Cr from Meerganj slump sale materially reduced net debt (though amount not quantified in this filing).
- EPS of ₹5.54 vs a loss per share of ₹0.02 in Q1FY26, reflecting the sale gain.
Key concerns
- Underlying operating profit (excluding exceptional) is a loss — OPM stuck at 2%, the same as Q1FY26.
- Sequential margin collapse from Q4FY26's 21% to 2% highlights seasonal volatility and thin core earnings.
- High debt (D/E 1.03) and interest costs remain a drag on profitability.
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