Dharmaj Crop Q1 FY27 Results (NSE: DHARMAJ)
Signal: Margin expansion
The read
The key inflection is the operating-margin recovery: consolidated EBITDA margin rose to 15.3% from 13.8% YoY and 4.5% in Q4FY26, with EBITDA growth of 15.4% materially ahead of 4.2% revenue growth; however, the 190bps gross-margin tailwind lacks a disclosed driver and needs confirmation given the company's seasonal volatility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹38.24 Cr | +4.2% | +63.6% |
| EBIT | ₹5.37 Cr | N/A | |
| Net profit | ₹3.81 Cr | +16.9% | |
| EPS | ₹11.28 | +17.0% | |
| EBIT margin | 15.3% |
P&L walk
Consolidated revenue was 382.38, up 4.2% YoY, while EBITDA increased 15.4% to 58.54 and margin expanded to 15.3%; PAT rose 16.9% to 38.11, with other income only 1.13 and therefore not the earnings driver.
Key positives
- Consolidated revenue of 382.38 grew 4.2% YoY, while EBITDA of 58.54 grew 15.4%, creating an 11.2pp growth gap and lifting EBITDA margin by 149bps to 15.3%.
- Gross margin expanded approximately 190bps YoY to 26.1%; raw material cost was 61.7% of revenue versus 56.1% a year earlier, although management did not identify the driver.
- Finance costs fell 13.9% YoY to 26.83, supporting PAT growth of 16.9% to 38.11.
- EPS rose 17.0% YoY to 11.28, closely tracking PAT and indicating no disclosed dilution.
Key concerns
- Revenue growth of 4.2% YoY was modest relative to the prior Q1FY26 growth rate of 43.9%, while the filing continues to identify weather and cropping patterns as material sources of quarterly volatility.
- The approximately 190bps gross-margin expansion is not attributed to input deflation, pricing or mix, leaving the durability of the margin rebound unconfirmed.
- An independent director resigned effective August 7, 2026 due to professional commitments; the Audit Committee and Nomination and Remuneration Committee were subsequently reconstituted.
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