Eveready Inds. Q1 FY27 Results (NSE: EVEREADY)
Signal: Steady quarter
The read
The trajectory improved on revenue, with consolidated revenue at ₹407.71 crore, +9.0% YoY versus +6.6% in Q2FY26 and +9.9% in Q3FY26, but the operating inflection is modest: derived EBITDA margin rose only about 17bps YoY to 15.1% after four quarters of broadly neutral OPM, while PAT growth to ₹36.97 crore is partly comparison-driven by the absence of last year’s ₹7.07 crore exceptional charge.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹407.71 Cr | +8.8% | +24.6% |
| Net profit | ₹36.97 Cr | +22.3% | |
| EPS | ₹5.09 | +22.4% | |
| EBIT margin | 15.1% |
P&L walk
Consolidated revenue increased to ₹407.97 crore of total income, +8.3% YoY, while gross margin slipped 28bps to 44.5% as material costs rose to 41.0% of revenue; EBITDA margin improved about 17bps to 15.1%, and PAT rose to ₹36.97 crore, helped by no current-quarter exceptional charge versus ₹7.07 crore last year.
Key positives
- Revenue from operations reached ₹407.71 crore, +9.0% YoY, accelerating from +6.6% in Q2FY26 and broadly sustaining +9.9% growth in Q3FY26.
- Employee expense grew only 3.2% YoY to ₹47.19 crore against 9.0% revenue growth, while other expenses grew 7.1% to ₹73.03 crore.
- Finance costs declined 43.6% YoY to ₹3.20 crore, supporting the improvement in pre-tax operating conversion.
- EPS rose 22.4% YoY to ₹5.09, tracking PAT without evidence of equity dilution.
Key concerns
- Gross margin compressed 28bps YoY to 44.5% as cost of materials consumed increased to 41.0% of revenue from 34.4%; the filing does not disclose the cause or quantify pricing/mix support.
- Derived EBITDA margin improved only about 17bps YoY to 15.1%, so the quarter does not yet establish a meaningful margin recovery after four neutral-margin quarters.
- PAT growth of 22.3% to ₹36.97 crore is flattered by the absence of last year’s ₹7.07 crore exceptional charge and is not comparable with the prior quarter’s ₹141.76 crore exceptional-item-supported PAT.
Research and educational content only. Not investment advice.