GSP Crop Science Q1 FY27 Results (NSE: GSPCROP)
Signal: Margin expansion
The read
The key inflection is the recovery from Q3FY26's 5% OPM to a 13.2% consolidated EBITDA margin, supported by EBITDA growth of 13.8% versus revenue growth of 2.4% and lower finance cost; however, the thesis remains qualified by 23.4% of PBT coming from other income, EPS dilution and a ₹48.88 million standalone-to-consolidated PAT gap.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹386 Cr | +2.4% | -4.1% |
| EBIT | ₹42.13 Cr | N/A | |
| Net profit | ₹26.39 Cr | +16.9% | |
| EPS | ₹5.67 | -5.8% | |
| EBIT margin | 13.2% |
P&L walk
Consolidated revenue increased 2.4% YoY to ₹3,859.95 million, while EBITDA rose 13.8% to ₹508.00 million and margin expanded 136bps to 13.2%; lower finance cost and stronger operating profit lifted PAT 16.9% to ₹263.94 million, although other income contributed 23.4% of PBT.
Segments
The group is a single agrochemical segment, but standalone PAT of ₹312.82 million exceeded consolidated PAT of ₹263.94 million by ₹48.88 million, indicating the subsidiary or consolidation adjustments dragged reported group earnings.
Key positives
- Consolidated EBITDA rose 13.8% YoY to ₹508.00 million versus revenue growth of 2.4%, an 11.4 percentage-point gap, while EBITDA margin expanded 136bps to 13.2%.
- Depreciation rose 30.1% YoY to ₹86.65 million and finance cost declined 19.1% to ₹67.71 million; these slower or declining semi-fixed costs supported the 136bps margin expansion.
- Consolidated PAT increased 16.9% YoY to ₹263.94 million despite only 2.4% revenue growth.
- IPO proceeds of ₹1,130.53 million were fully utilised, including ₹595.58 million for repayment or pre-repayment of borrowings.
Key concerns
- Consolidated revenue grew only 2.4% YoY to ₹3,859.95 million and declined 4.1% QoQ, with no volume disclosure to establish demand momentum.
- EPS declined 5.8% YoY to ₹5.67 while PAT increased 16.9% to ₹263.94 million, indicating post-IPO dilution.
- Standalone PAT of ₹312.82 million was ₹48.88 million higher than consolidated PAT, so group earnings are being dragged below the parent level.
- Employee benefits expense rose 23.6% YoY to ₹318.70 million, far faster than consolidated revenue growth of 2.4%.
Earnings quality: includes non-operating other income
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