Ginni Filaments Q1 FY27 Results (NSE: GINNIFILA)
Signal: Margin pressure
The read
Operating performance deteriorated sharply YoY with EBIT margin halving from 20.5% to 12.7%, driven by raw material cost inflation and higher employee/other costs; PAT decline of 14.7% was cushioned by a 50% drop in finance costs. Consumer products segment saw the steepest margin erosion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹102.89 Cr | 1.3% | 5.2% |
| EBIT | ₹13.02 Cr | -37.4% | |
| Net profit | ₹9.05 Cr | -14.7% | |
| EPS | ₹1.06 | -14.5% | |
| EBIT margin | 12.65% |
P&L walk
Revenue grew modestly YoY (+1.3%) but EBIT fell 37.4% as raw material costs rose 11% YoY, employee costs grew 13.8%, and other expenses jumped 18.1%. Finance cost halved, providing some offset. PAT declined 14.7% YoY due to the operating drag, with prior year also benefiting from a lower effective tax rate.
Segments
Textiles segment revenue grew 24% QoQ but flat YoY (-1.8%); its segment result margin compressed from 20.2% to 15.8% YoY, dragging overall profitability. Consumer Products segment revenue grew 7.2% YoY but dropped 2.4% QoQ, and its result margin collapsed from 12.6% to 3.8%, significantly underperforming.
Key positives
- Revenue grew sequentially (+5.2% QoQ) driven by textiles segment (+24% QoQ).
- Finance costs halved YoY to ₹71.54 Lakh, reflecting lower debt and improved interest coverage.
- Gross margin QoQ held stable (55.49% vs 55.65% in Q4), suggesting some cost pass-through in Q1 vs Q4.
Key concerns
- Gross margin fell 232bps YoY to 55.49% as raw material costs rose 11% vs revenue growth of 1.3%.
- EBIT margin halved YoY to 12.65% due to cost pressures and weak operating leverage.
- Consumer Products segment result margin collapsed from 12.6% to 3.8% YoY, indicating pricing or competitive pressure.
- Employee costs grew 13.8% YoY, outpacing revenue growth and squeezing margins.
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