Epigral Q1 FY27 Results (NSE: EPIGRAL)
Signal: Margin pressure
The read
Revenue inflected to +16% YoY after three quarters of decline, but margins compressed sharply (OPM -600bps) as raw material costs spiked ~870bps as % of sales. PAT dropped 38% YoY entirely on a one-off tax credit base effect; excluding that, underlying profit grew. The margin headwind is the key watch item for coming quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹705.36 Cr | 16.29% | -4.19% |
| EBIT | ₹133.18 Cr | 24.78% | |
| Net profit | ₹99.74 Cr | -37.93% | |
| EPS | ₹23.12 | -37.93% | |
| EBIT margin | 18.89% |
P&L walk
Revenue grew 16.3% YoY but gross margin collapsed as cost of materials surged to 61% of revenue (+870bps YoY); EBITDA margin contracted 600bps to 18.9% as input cost inflation was not fully passed through; PAT fell 37.9% YoY due to a high base (one-time deferred tax credit of ₹80.87 Cr in Q1FY25).
Key positives
- Revenue growth of +16.3% YoY to ₹705 Cr, reversing three quarters of YoY decline.
- Finance cost dropped 69% YoY to ₹7.2 Cr, reflecting lower debt or better rates.
- No exceptional items; clean P&L with no one-offs (except the tax base effect is prior-year).
Key concerns
- OPM contracted 600bps YoY to 18.9% as raw material cost % of revenue rose ~870bps to 61% — company unable to fully pass through input inflation.
- Net profit fell 38% YoY to ₹99.7 Cr, though driven by a high base from one-time deferred tax credit; underlying operating profit still declined.
- After four consecutive quarters of margin contraction (Q3FY26 to Q4FY26 and now Q1FY27), margin pressure appears structural, not transient.
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