Gandhi Spl. Tube Q1 FY27 Results (NSE: GANDHITUBE)
Signal: Steady quarter
The read
The operating trajectory improved in Q1FY27: revenue reached ₹5,719.51 lakh, +18.9% YoY, gross margin expanded 526bps to 68.6% as material cost fell to 32.0% of revenue, and EBITDA grew 28.4% YoY; however, PAT growth of 29.3% was not purely operational because ₹1,037.12 lakh of other income included a ₹932.12 lakh fair-value investment gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹57.2 Cr | 18.9% | 18.9% |
| EBIT | ₹36.16 Cr | 29.1% | |
| Net profit | ₹27.94 Cr | 29.3% | |
| EPS | ₹22.99 | 29.3% | |
| EBIT margin | 64.7% |
P&L walk
Standalone revenue increased to ₹5,719.51 lakh, +18.9% YoY and +18.9% QoQ; gross margin expanded to 68.6% from 63.4% as material cost fell to 32.0% of revenue from 37.7%, while EBITDA margin was 64.7% and PAT rose 29.3% despite significant support from other income.
Key positives
- Revenue was ₹5,719.51 lakh, +18.9% YoY, marking a step-up from the 11.1% YoY growth reported for Q4FY26.
- Gross margin expanded 526bps YoY to 68.6% as raw-material cost fell to 32.0% of revenue from 37.7%; the filing does not identify the driver.
- EBITDA reached ₹3,702.00 lakh, +28.4% YoY, ahead of revenue growth of 18.9%, while EBITDA margin was 64.7%.
- EPS rose 29.3% YoY to ₹22.99, tracking PAT growth without an apparent dilution signal.
Key concerns
- Other income of ₹1,037.12 lakh represented 28.7% of PBT and included a ₹932.12 lakh fair-value gain on investments, making the ₹2,793.67 lakh PAT less representative of recurring operations.
- Power and fuel expense increased 33.2% YoY to ₹382.87 lakh, faster than revenue growth of 18.9%, lifting the expense ratio to 6.7% from 6.1%.
Earnings quality: includes non-operating other income
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