Dollar Industrie Q1 FY27 Results (NSE: DOLLAR)
Signal: Margin expansion
The read
The key inflection is operating recovery: consolidated EBITDA grew 11.6% YoY and margin expanded 110bps to 12% despite revenue growth of only 1.4%, while PAT rose 22.0%; however, gross margin compressed 210bps as raw-material cost increased to 51.4% of revenue, so the durability of the profit recovery depends on sustaining cost control and avoiding further input-cost absorption.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹404.81 Cr | 1.4% | -34.9% |
| EBIT | ₹39.28 Cr | 15.3% | |
| Net profit | ₹26.02 Cr | 22.0% | |
| EPS | ₹4.59 | 22.1% | |
| EBIT margin | 12% |
P&L walk
Consolidated revenue increased 1.4% YoY to ₹40,480.78 lakh and fell 34.9% QoQ, but EBITDA grew 11.6% to ₹4,862 lakh with a 12% margin and PAT rose 22.0% to ₹2,625.08 lakh, aided by operating conversion rather than other income.
Segments
The group is single-segment, but the subsidiary contributed ₹2,092.36 lakh of revenue and ₹67.98 lakh of net profit; consolidated PAT of ₹2,625.08 lakh was ₹179.13 lakh above standalone PAT of ₹2,445.95 lakh, showing a modest positive subsidiary/JV contribution.
Key positives
- Consolidated EBITDA increased 11.6% YoY to ₹4,862 lakh versus revenue growth of 1.4%, expanding EBITDA margin to 12% from approximately 10.9% in the year-ago quarter.
- Consolidated PAT rose 22.0% YoY to ₹2,625.08 lakh and EPS rose 22.1% to ₹4.59, showing earnings growth broadly supported by operations rather than a material other-income contribution.
- Standalone EBITDA grew 15.3% YoY to ₹4,714 lakh and standalone PAT grew 24.7% to ₹2,445.95 lakh, ahead of consolidated profit growth.
Key concerns
- Gross margin compressed 210bps YoY to 48.6% as raw-material cost increased to 51.4% of revenue from 49.3%; the filing does not disclose the cause or the extent of pricing pass-through.
- Revenue grew only 1.4% YoY to ₹40,480.78 lakh and declined 34.9% QoQ, so the 22.0% PAT growth currently reflects conversion and cost movements more than demand acceleration.
- Consolidated finance costs were ₹352.30 lakh, up from ₹244.37 lakh in the year-ago quarter based on the printed comparative, despite falling 39.0% QoQ.
Research and educational content only. Not investment advice.