Emami Paper Q1 FY27 Results (NSE: EMAMIPAP)
Signal: Margin expansion
The read
Q1FY27 marked a sharp inflection: revenue grew 21.8% YoY to ₹560 Cr, while EBITDA margin expanded 631bps to 14.9% on raw material tailwinds and strong operating leverage, lifting PAT 512% to ₹38.6 Cr. The trajectory signals sustained recovery from a low base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹560.16 Cr | 21.8% | 12.8% |
| EBIT | ₹83.15 Cr | 111.7% | |
| Net profit | ₹38.61 Cr | 511.9% | |
| EPS | ₹6.21 | 639.3% | |
| EBIT margin | 14.9% |
P&L walk
Revenue growth was volume and price led, input cost tailwind (raw material % down 490bps) and operating leverage (employee+depreciation+finance cost grew far slower than revenue) drove EBITDA margin from 8.5% to 14.9%.
Segments
Single-segment paper and paperboard business; no segment table disclosed.
Key positives
- Revenue +21.8% YoY to ₹560 Cr, driven by volume and/or pricing.
- EBITDA margin surged from 8.5% to 14.9% (+631bps) on input cost tailwinds (raw material cost % down 490bps) and operating leverage (employee + D&A + finance cost growth far below revenue).
- PAT jumped 512% YoY to ₹38.6 Cr; basic EPS ₹6.21 vs ₹0.84.
- No exceptional items in current quarter; operating profit fully organic.
Key concerns
- Input cost tailwind may not sustain if pulp prices rebound; company did not disclose driver.
- High leverage (D/E 1.42 per FY26) but finance cost declining signals debt reduction; upcoming preference share redemptions (~₹124 Cr in total) will be a cash outflow.
Research and educational content only. Not investment advice.