Goodyear India Q1 FY27 Results (NSE: GOODYEAR)
Signal: Margin pressure
The read
The trajectory deteriorated despite 18.0% YoY revenue growth: gross margin compressed about 510bps as material-related costs rose to 77.6% of revenue, EBITDA fell 51.8% to ₹15.85 Cr and EBIT fell 84.3% to ₹3.17 Cr; the ₹651 lakh PAT is additionally low-quality because other income was ₹582 lakh and the ₹818 lakh exceptional reversal represented 94% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹774.35 Cr | 18.0% | +25.6% |
| EBIT | ₹3.17 Cr | -84.3% | |
| Net profit | ₹6.51 Cr | -53.9% | |
| EPS | ₹2.82 | -53.9% | |
| EBIT margin | 2% |
P&L walk
Revenue increased to ₹77,435 lakh, +18.0% YoY and +25.6% QoQ, but gross margin compressed by about 510bps YoY as material, trading-purchase and inventory costs rose faster than sales; EBITDA fell 51.8% to ₹15.85 Cr and PAT fell 53.9% to ₹651 lakh, with an ₹818 lakh exceptional reversal materially supporting reported PBT.
Key positives
- Revenue from operations reached ₹77,435 lakh, growing 18.0% YoY and 25.6% QoQ.
- Employee benefits expense rose only 4.0% YoY versus 18.0% revenue growth, reducing employee-cost intensity to 6.8% of revenue from approximately 7.7%.
- EPS declined 53.9% YoY in line with PAT, with no dilution signal from the PAT-to-EPS cross-check.
Key concerns
- Gross margin compressed approximately 510bps YoY to 22.4%, with raw material, purchase and inventory-related costs rising to 77.6% of revenue from 72.5%; the filing does not disclose the cause.
- EBITDA fell 51.8% YoY to ₹15.85 Cr and EBITDA margin declined to 2%, showing negative operating flow-through despite 18.0% revenue growth.
- Finance costs rose 110.3% YoY to ₹265 lakh, materially faster than revenue.
- Revenue growth is not supported by disclosed volume or realisation data, preventing a volume-versus-price assessment.
Earnings quality: includes other income and an exceptional item
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