Frontier Springs Q1 FY27 Results (NSE: FRONTSP)
Signal: Steady quarter
The read
The key inflection is a profit slowdown despite positive revenue growth: revenue rose 4.1% YoY, but EBITDA fell 7.9%, EBITDA margin declined to 24.7%, and PAT fell 18.5%; gross-margin expansion of 152bps from lower raw-material intensity was more than offset by 19.9% growth in combined employee and other expenses and sharply lower other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹78.46 Cr | 4.1% | -4.9% |
| EBIT | ₹18.11 Cr | -9.4% | |
| Net profit | ₹12.01 Cr | -18.5% | |
| EPS | ₹10.17 | -74.6% | |
| EBIT margin | 24.7% |
P&L walk
Revenue increased 4.1% YoY to ₹7,846.21 lakh but declined 4.9% sequentially; gross margin expanded 152bps to 52.2% as raw-material intensity fell to 47.8%, yet EBITDA declined 7.9% and EBITDA margin fell to 24.7%, while PAT fell 18.5% to ₹1,201.09 lakh.
Key positives
- Gross margin expanded 152bps YoY to 52.2% as raw-material cost declined to 47.8% of revenue from 49.4%, providing evidence of improved material economics even though the filing does not disclose the cause.
- Finance cost fell 11.1% YoY to ₹5.83 lakh and remains immaterial relative to revenue, limiting balance-sheet pressure on earnings.
- The statutory auditor issued an unmodified limited-review conclusion for the quarter.
Key concerns
- Revenue grew only 4.1% YoY and declined 4.9% QoQ, while EBITDA fell 7.9% and EBITDA margin contracted 40bps to 24.7%.
- Combined employee and other expenses increased 19.9% YoY to ₹2,334.64 lakh, substantially faster than revenue and offsetting the 152bps gross-margin improvement.
- PAT declined 18.5% YoY to ₹1,201.09 lakh, with other income falling 80.5% YoY to ₹11.72 lakh, reducing non-operating support to reported profit.
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