DIC India Q1 FY27 Results (NSE: DICIND)
Signal: Margin expansion
The read
The operating inflection is meaningful: revenue grew 24.7% YoY, gross margin expanded 215bps to 27.7%, and derived EBITDA margin rose 380bps to 8.5% after the preceding quarter's 4.4%; however, raw-material consumption increased 45.0% YoY and reached 72.6% of revenue, so the margin recovery requires confirmation rather than being treated as an established structural trend.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹524.48 Cr | 20.1% | +17.1% |
| EBIT | ₹25.66 Cr | 153.3% | |
| Net profit | ₹18.5 Cr | 166.2% | |
| EPS | ₹20.16 | 166.3% | |
| EBIT margin | 8.5% |
P&L walk
Standalone revenue rose to ₹28,395.48 lakh, up 24.7% YoY and 17.1% QoQ, while gross margin expanded 215bps YoY and EBITDA margin rose 380bps to 8.5%; PAT growth of 227.0% was supported primarily by operating profit rather than other income.
Key positives
- Revenue increased to ₹28,395.48 lakh, up 24.7% YoY and 17.1% QoQ, indicating a stronger near-term demand or realisation outcome than the recent quarter.
- Gross margin expanded 215bps YoY to 27.7% despite raw-material consumption rising 45.0% YoY; the filing does not disclose the reason for the improvement.
- Derived EBITDA grew 125.6% YoY to ₹2,410.32 lakh versus revenue growth of 24.7%, a +100.9 percentage-point growth gap; employee costs grew 3.9% and depreciation 3.8%, supporting fixed-cost absorption and a 380bps margin expansion.
- PAT rose 227.0% to ₹1,426.19 lakh and EPS rose 227.2% to ₹15.54, with clean PAT-to-EPS conversion.
Key concerns
- Raw-material consumption increased to 72.6% of revenue from 62.4% a year ago even as gross margin expanded, making the current margin benefit difficult to attribute and potentially less repeatable.
- H1 operating cash flow was negative ₹3,917.33 lakh versus ₹4,278.43 lakh generated in the comparable period, driven by ₹7,483.41 lakh of receivables and ₹7,353.97 lakh of inventory absorption.
- Trade receivables increased to ₹33,854.03 lakh from ₹26,343.85 lakh at December 2025 and inventories increased to ₹19,915.28 lakh from ₹12,561.31 lakh, creating a material working-capital drag.
Research and educational content only. Not investment advice.