Godrej Industrie Q1 FY27 Results (NSE: GODREJIND)
Signal: Margin expansion
The read
The quarter marks a recovery in consolidated operating margin to 10.55%, up 165bps YoY after the 3% margin trough in Q2FY26, but the earnings trajectory remains lower quality: PAT fell 27.9% to ₹523.36 crore because other income declined 27.6% to ₹912.21 crore and EPS fell 18.6% to ₹8.44; the standalone parent still lost ₹5.41 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,448.09 Cr | +22.2% | -29.2% |
| EBIT | ₹441.8 Cr | +11.4% | |
| Net profit | ₹523.36 Cr | -27.9% | |
| EPS | ₹8.44 | -18.6% | |
| EBIT margin | 10.55% |
P&L walk
Consolidated revenue increased to ₹5,448.09 crore, +22.2% YoY, and EBITDA margin improved to 10.55% from 8.90%, but PAT declined to ₹523.36 crore, -27.9% YoY, because other income fell 27.6% and the associate-profit contribution was volatile.
Key positives
- Consolidated revenue was ₹5,448.09 crore, +22.2% YoY, accelerating from ₹4,459.80 crore in Q1FY26.
- Operating margin expanded to 10.55% from 8.90% YoY, reversing the 3% margin reported in Q2FY26.
- Consolidated EBIT increased to approximately ₹441.80 crore, +11.4% YoY, despite higher depreciation of ₹133.37 crore.
Key concerns
- PAT fell 27.9% YoY to ₹523.36 crore despite 22.2% revenue growth, showing weak conversion from operating growth to shareholder earnings.
- Finance costs increased 29.0% YoY to ₹745.14 crore and interest service coverage was only 1.13x.
- The standalone parent remained loss-making at ₹5.41 crore despite 26.6% revenue growth to ₹1,289.45 crore.
- Net debt-to-equity rose to 2.38x from 1.90x YoY, while gross debt-to-equity remained elevated at 6.42x.
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