Gem Aromatics Q1 FY27 Results (NSE: GEMAROMA)
Signal: Slipped to loss
The read
The key inflection is a return to consolidated loss: revenue grew 12.8% YoY to ₹988.50 million, but gross margin compressed 1290bps to 16.7%, EBITDA margin fell 1338bps to 3.5%, and depreciation rose 181.9%, reversing the ₹79.84 million Q1FY26 profit into a ₹78.74 million loss; standalone strength does not currently translate to group earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹98.85 Cr | 12.8% | -10.5% |
| EBIT | ₹-5.66 Cr | N/A | |
| Net profit | ₹-7.87 Cr | N/A | |
| EPS | ₹-1.56 | N/A | |
| EBIT margin | 3.5% |
P&L walk
Consolidated revenue rose to ₹988.50 million, +12.8% YoY but -10.5% QoQ, while gross margin compressed to 16.7% from 29.6% YoY and 30.5% QoQ; EBITDA margin fell to 3.5%, depreciation rose 181.9% YoY, and PAT moved from ₹79.84 million profit to a ₹78.74 million loss.
Segments
The group has a single operating segment, but standalone PAT was ₹72.52 million profit versus consolidated PAT of ₹-78.74 million loss; the material divergence sits in the subsidiaries and consolidated cost structure, including consolidated depreciation of ₹51.27 million versus standalone depreciation of ₹16.06 million.
Key positives
- Consolidated revenue was ₹988.50 million, up 12.8% YoY, despite a 10.5% QoQ decline.
- Standalone PAT increased 11.2% YoY to ₹72.52 million, supported by employee costs declining 10.0% YoY and finance costs declining 54.4% YoY.
- Standalone EBITDA margin remained 15.3%, materially above the 3.5% consolidated margin, showing that the parent manufacturing operation retained positive operating profitability.
Key concerns
- Consolidated gross margin compressed 1290bps YoY to 16.7% as raw materials plus inventory changes rose to 83.3% of revenue from 69.6% YoY; revenue grew 12.8% while cost of materials consumed rose 38.3%, indicating inadequate cost pass-through.
- Consolidated EBITDA fell 78.5% YoY to ₹3.47 crore equivalent and EBITDA margin declined 1338bps to 3.5%.
- Consolidated PAT swung from ₹79.84 million profit to ₹78.74 million loss, despite revenue growth, while standalone PAT rose 11.2% to ₹72.52 million.
- Depreciation rose 181.9% YoY to ₹51.27 million on a consolidated basis, creating a major EBIT drag; the filing gives no asset-base or CWIP disclosure to validate the capex impact.
Research and educational content only. Not investment advice.