GHCL Textiles Q1 FY27 Results (NSE: GHCLTEXTIL)
Signal: Margin expansion
The read
Q1FY27 marks a sharp inflection in profitability: revenue grew 52.7% YoY, but EBITDA surged 115.9% as operating leverage and input cost tailwinds boosted EBITDA margin by 499bps to 17.06%. PAT growth of 191% reflects the combination of margin expansion and revenue scale. The momentum is strong, but the sustainability of input cost deflation is uncertain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹408.94 Cr | 52.7% | 12.4% |
| EBIT | ₹54.48 Cr | 181.7% | |
| Net profit | ₹39.35 Cr | 191.0% | |
| EPS | ₹4.12 | 192.1% | |
| EBIT margin | 17.06% |
P&L walk
Strong operating leverage and input cost tailwinds drove EBITDA growth far ahead of revenue, with margins expanding sharply.
Key positives
- Revenue grew 52.7% YoY to ₹408.94 Cr, driven by strong demand across textile product lines.
- EBITDA surged 115.9% YoY to ₹69.78 Cr, with margin expanding 499bps to 17.06% on operating leverage and raw material cost deflation.
- PAT jumped 191% YoY to ₹39.35 Cr, with EPS rising to ₹4.12 from ₹1.41.
- Gross margin improved 189bps YoY to 31.16% as raw material cost as % of revenue fell from 70.4% to 62.0%.
- Employee cost grew only 9.7% YoY and depreciation 17.9%, both far below revenue growth, indicating strong fixed-cost leverage.
Key concerns
- Other income dropped to ₹0.66 Cr from ₹2.32 Cr YoY, but impact is marginal given operating profit surge.
- Tax expense increased sharply (current tax ₹10.47 Cr vs ₹2.60 Cr YoY) but profit growth more than compensates.
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