GRP Q1 FY27 Results (NSE: GRPLTD)
Signal: Margin expansion
The read
The key inflection is the return from Q4FY26's 6.2% consolidated OPM and ₹134.00 lakh loss to 11.1% OPM and ₹420.00 lakh PAT, driven by 26.7% revenue growth and fixed-cost absorption; however, standalone gross margin compressed 520bps YoY as raw-material cost rose to 55.0% of revenue, so the durability of the recovery depends on pass-through and mix.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹156.83 Cr | +26.7% | +8.5% |
| EBIT | ₹12.37 Cr | N/A | |
| Net profit | ₹4.2 Cr | +140.0% | |
| EPS | ₹7.87 | +140.0% | |
| EBIT margin | 11.1% |
P&L walk
Consolidated revenue increased 26.7% YoY to ₹15,683.00 lakh and EBITDA margin expanded 308bps to 11.1%; PAT rose 140.0% to ₹420.00 lakh, with the improvement primarily reflecting operating recovery rather than other income, which was only ₹46.00 lakh.
Segments
Rubber Recycling drove the quarter: revenue rose 33.8% YoY to ₹15,439.13 lakh and segment result increased 71.1% to ₹1,922.86 lakh, while Others revenue grew only 6.5% to ₹1,438.79 lakh and result grew 4.0% to ₹221.94 lakh; standalone PAT of ₹482.03 lakh was above consolidated PAT of ₹420.00 lakh, indicating subsidiary-level drag.
Key positives
- Consolidated revenue reached ₹15,683.00 lakh, up 26.7% YoY and 8.5% QoQ after a 9.9% YoY decline in Q4FY26.
- EBITDA margin expanded 308bps YoY to 11.1%; EBITDA grew approximately 75% YoY versus revenue growth of 26.7%, a growth gap of roughly 48pp, while employee costs grew 12.5% and depreciation 19.4% on the standalone statement.
- Rubber Recycling revenue increased 33.8% YoY to ₹15,439.13 lakh and segment result rose 71.1% to ₹1,922.86 lakh.
- PAT of ₹420.00 lakh and EPS of ₹7.87 both grew 140.0% YoY, with other income only ₹46.00 lakh and no exceptional item in the standalone quarter.
Key concerns
- Standalone gross margin compressed 520bps YoY to 45.0% as raw-material cost rose to 55.0% of revenue from 49.8%; the filing does not disclose the cause or the extent of pass-through.
- Finance costs increased 21.4% YoY to ₹385.14 lakh, outpacing the 12.5% growth in standalone employee costs and remaining a drag below operating profit.
- Consolidated PAT of ₹420.00 lakh was 12.9% below standalone PAT of ₹482.03 lakh, suggesting earnings drag from subsidiaries or consolidation adjustments.
- Revenue and margin remain volatile: consolidated OPM moved from 20.5% in Q4FY25 to 8.0% in Q1FY26, 6.2% in Q4FY26, and now 11.1%.
Research and educational content only. Not investment advice.