D P Wires Q1 FY27 Results (NSE: DPWIRES)
Signal: Growth reaccelerated
The read
The operating trajectory improved modestly: revenue rose 3.7% YoY to ₹13,056.74 lakh, EBITDA rose 16.6% to ₹703.00 lakh and EBIT rose 26.6% to ₹661.00 lakh as raw-material intensity fell 700bps to 61.2% of revenue; however, the ₹474.30 lakh PAT includes ₹319.00 lakh of other income and the trading segment remains structurally problematic with a ₹206.93 lakh loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹130.57 Cr | 3.7% | 1.2% |
| EBIT | ₹6.61 Cr | 26.6% | |
| Net profit | ₹4.74 Cr | 31.7% | |
| EPS | ₹3.06 | 31.9% | |
| EBIT margin | 5.4% |
P&L walk
Revenue increased to ₹13,056.74 lakh, +3.7% YoY and +1.2% QoQ, while lower direct-cost intensity supported EBITDA of ₹703.00 lakh; EBIT rose 26.6% to ₹661.00 lakh, but PAT growth to ₹474.30 lakh was aided by ₹319.00 lakh of other income and the trading segment remained loss-making at ₹206.93 lakh.
Segments
The wire division remained the earnings engine with ₹1,710.11 lakh of result, +12.3% YoY, while the trading division grew revenue 45.3% YoY to ₹3,277.24 lakh but swung to a ₹206.93 lakh loss from a ₹41.14 lakh profit, materially dragging the group result.
Key positives
- EBITDA increased 16.6% YoY to ₹703.00 lakh versus revenue growth of 3.7%, indicating better operating conversion.
- Raw-material cost declined to 61.2% of revenue from 68.2% YoY, supporting a 90bps gross-margin improvement to 8.7%.
- Wire Division result rose 12.3% YoY to ₹1,710.11 lakh despite wire revenue declining 5.4% YoY to ₹9,769.35 lakh.
- Finance costs declined 28.9% YoY to ₹24.64 lakh, while EPS grew 31.9% to ₹3.06 and tracked PAT growth.
Key concerns
- Trading revenue rose 45.3% YoY to ₹3,277.24 lakh but produced a ₹206.93 lakh loss versus a ₹41.14 lakh profit last year, showing poor earnings quality in the non-wire activity.
- PAT growth of 31.7% to ₹474.30 lakh was not purely operating-led because other income of ₹319.00 lakh represented 50.2% of PBT.
- Wire Division revenue declined 5.4% YoY to ₹9,769.35 lakh, so the core manufacturing franchise has not yet returned to volume growth.
Earnings quality: includes non-operating other income
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