Grauer & Weil Q1 FY27 Results (NSE: GRAUWEIL)
Signal: Margin pressure
The read
Revenue surged 17.9% YoY but gross margin collapsed ~950bps as raw material costs jumped from 46.4% to 54.2% of revenue — a sharp headwind that reversed the margin expansion seen in Q4FY26 (+800bps). EBITDA fell 7.2% and PAT dropped 8.7%, the first YoY profit decline in four quarters. Surface Finishings held profit steady, but Engineering segment PBIT halved and subsidiary losses added drag. Other income at 23.2% of PBT flatters the operating picture.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹298.68 Cr | 17.9% | -74.9% |
| EBIT | ₹54.23 Cr | -8.4% | |
| Net profit | ₹39.81 Cr | -8.7% | |
| EPS | ₹0.88 | -8.3% | |
| EBIT margin | 20.3% |
P&L walk
Revenue grew 17.9% YoY but gross margin collapsed as raw material costs surged from 46.4% to 54.2% of revenue, driving EBITDA margin down 800bps to 20.3%; PAT fell 8.7% partly due to lower other income (23.2% of PBT vs ~22% prior) and subsidiary drag — two subsidiaries with total revenue ₹555.59 lakh but net loss ₹204.58 lakh.
Segments
Surface Finishings (90% of segment revenue) grew 17.1% YoY and generated segment PBIT ₹6,147 lakh (+1.6% YoY) — the profit engine; Engineering segment revenue +24.5% YoY but PBIT slumped 53.2% YoY to ₹280 lakh; Shoppertainment (mall) remains loss-making at -₹329 lakh, with operations suspended since March 2025 per MPCB order.
Key positives
- Consolidated revenue grew 17.9% YoY to ₹29,868 lakh, driven by Surface Finishings (+17.1%) and Engineering (+24.5%).
- Segment capital employed in Surface Finishings rose to ₹28,519 lakh from ₹27,153 lakh a year ago, indicating ongoing investment.
- Finance cost declined 21.7% YoY, reflecting low leverage (D/E 0.01).
Key concerns
- Gross margin compressed ~950bps YoY as raw material cost % of revenue surged from 46.4% to 54.2% — input-cost headwind not explained in filing.
- EBITDA margin contracted 800bps YoY to 20.3%; EBITDA fell 7.2% despite revenue growth of 17.9%.
- PAT declined 8.7% YoY, the first YoY drop since Q4FY26's 91.2% surge; other income (23.2% of PBT) elevated relative to operating income.
- Engineering segment PBIT halved to ₹280 lakh despite 24.5% revenue growth — profitability under pressure.
- Shoppertainment (mall) continues to incur losses (-₹329 lakh) with operations suspended indefinitely pending MPCB/Supreme Court proceedings.
Earnings quality: includes non-operating other income
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