Ganesh Benzoplast Q1 FY27 Results (NSE: GANESHBE)
Signal: Margin pressure
The read
The trajectory has shifted from Q1FY26's 30% OPM to a 27.4% Q1FY27 EBITDA margin despite 22.9% revenue growth: Chemicals is scaling at 27.0% YoY, but LST profit fell 15.0%, gross margin compressed 576bps, and 21.8% of consolidated PBT came from other income, leaving the earnings recovery operationally unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹117.5 Cr | 22.9% | 5.4% |
| EBIT | ₹26.06 Cr | -8.8% | |
| Net profit | ₹16.56 Cr | -8.5% | |
| EPS | ₹2.44 | -3.2% | |
| EBIT margin | 27.4% |
P&L walk
Revenue increased to ₹1,174.95 million, +22.9% YoY and +5.4% QoQ, but gross margin contracted 576bps YoY to 69.9% and EBITDA fell 6.4% to ₹322.5 million; higher finance cost QoQ and other income equal to 21.8% of PBT make the ₹175.82 million PAT less operationally clean.
Segments
Chemicals was the momentum segment, with revenue up 27.0% YoY to ₹626.93 million and result up 13.3% to ₹81.53 million, while the larger LST division grew revenue 18.5% but saw result fall 15.0% to ₹179.03 million; consolidation lifted revenue to ₹1,174.95 million versus standalone ₹703.39 million and PAT to ₹175.82 million versus ₹134.40 million.
Key positives
- Consolidated revenue reached ₹1,174.95 million, +22.9% YoY, accelerating from +18.0% in Q3FY26 and +11.0% in Q4FY26.
- Chemical Division revenue increased 27.0% YoY to ₹626.93 million and segment result increased 13.3% to ₹81.53 million, indicating the clearest current growth pocket.
- Consolidated finance cost declined 13.8% YoY to ₹20.07 million, while EPS of ₹2.44 declined only 3.2% versus PAT decline of 8.5%.
Key concerns
- Gross margin compressed 576bps YoY to 69.9% as raw-material, stock-in-trade and inventory-related costs rose to 38.1% of revenue from 24.6%; the filing does not disclose the cause or pricing response.
- EBITDA declined 6.4% YoY to ₹322.5 million and margin fell 260bps to 27.4% despite 22.9% revenue growth, extending the margin contraction seen in Q2FY26, Q3FY26 and Q4FY26.
- LST segment result fell 15.0% YoY to ₹179.03 million despite 18.5% revenue growth, showing that the largest division is absorbing margin pressure.
- Standalone EPS declined 9.2% YoY to ₹1.87 against standalone PAT decline of 4.6%, a divergence requiring monitoring.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.