EPL Ltd Q1 FY27 Results (NSE: EPL)
Signal: Margin pressure
The read
The key inflection is growth acceleration without earnings conversion: consolidated revenue growth reached 25.3% YoY from 17.6% in Q4FY26, but EBITDA growth lagged at 12.8%, operating margin contracted 120bps to 19.1% and PAT fell 1.4%; this follows the first margin contraction in Q4FY26 and makes the 20% underlying EBITDA-margin commitment the central monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,387.9 Cr | 25.3% | 6.7% |
| EBIT | ₹155.4 Cr | 7.0% | |
| Net profit | ₹98.6 Cr | -1.4% | |
| EPS | ₹3.08 | -1.6% | |
| EBIT margin | 19.1% |
P&L walk
Revenue accelerated to ₹13,879 million, up 25.3% YoY and 6.7% QoQ, but EBITDA grew only 12.8% to ₹2,648 million as raw material intensity rose to 44.0% of revenue from 40.4%, compressing the operating margin to 19.1% from 20.3% YoY and 19.7% QoQ; PAT declined 1.4% to ₹986 million.
Segments
EAP was the main growth engine, with revenue up 34.3% YoY to ₹3,602 million and segment result up 27.9% to ₹545 million, while Europe dragged profitability as revenue rose 20.2% but segment result fell 44.4% to ₹154 million; standalone PAT of ₹220 million was also materially below consolidated PAT of ₹986 million.
Key positives
- Consolidated revenue rose 25.3% YoY to ₹13,879 million, accelerating from 17.6% YoY in Q4FY26.
- EAP revenue grew 34.3% YoY to ₹3,602 million and segment result grew 27.9% to ₹545 million, making it the strongest disclosed regional contributor.
- Finance costs were nearly stable at ₹291 million, up only 3.6% YoY, while segment assets rose 24.4% YoY to ₹52,971 million and depreciation rose 22.1% to ₹1,094 million, a clean capex-to-depreciation cross-check.
- Other income of ₹36 million was small relative to PBT of ₹1,289 million, and consolidated PAT decline was operational rather than driven by treasury income.
Key concerns
- EBITDA grew 12.8% YoY to ₹2,648 million versus revenue growth of 25.3%, while EBITDA margin contracted 120bps to 19.1%.
- Net material cost increased to 40.6% of revenue from 39.8% YoY, contributing to gross-margin compression and indicating weaker input-cost absorption.
- Europe segment result fell 44.4% YoY to ₹154 million despite 20.2% revenue growth, highlighting regional mix or profitability pressure.
- Standalone finance costs rose 61.3% YoY to ₹100 million and standalone PAT fell 30.4% to ₹220 million, showing that the parent is materially weaker than the consolidated group.
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