Hawkins Cookers Q1 FY27 Results (NSE: HAWKINCOOK)
Signal: Margin pressure
The read
Revenue growth accelerated sharply to +33.1% YoY, the highest in several quarters, but gross margin compressed ~260bps due to higher raw material costs. Operating leverage from controlled employee costs (ratio -220bps) partly absorbed the input headwind. PAT growth of +17.1% lagged revenue expansion, reflecting margin pressure. The key question is whether input costs persist — if raw material inflation eases, margins should recover given strong demand and pricing power (revenue +33% vs raw material cost +43% suggests partial pass-through).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹318.13 Cr | 33.1% | 1.1% |
| EBIT | ₹40.87 Cr | 17.2% | |
| Net profit | ₹30.38 Cr | 17.1% | |
| EPS | ₹57.45 | 17.1% | |
| EBIT margin | 12.8% |
P&L walk
Revenue surged +33.1% YoY to ₹318.13 Cr, accelerating from prior quarters, but gross margin compressed ~260bps YoY as raw material cost of materials consumed rose to 48.1% of revenue (vs 43.2% a year ago). Employee cost grew only +10.1% YoY, providing operating leverage (cost ratio fell 220bps). EBITDA margin declined 200bps YoY to 13.4%, with the input-cost headwind only partially offset by fixed-cost dilution. PAT grew +17.1% YoY, slightly ahead of EBIT growth, aided by lower effective tax rate (25.6% vs 25.8% prior year).
Segments
Single-segment kitchenware manufacturer; no segment table.
Key positives
- Revenue surged +33.1% YoY to ₹318.13 Cr, accelerating sharply from the +19.2% in Q4FY26 — indicating strong demand momentum.
- Employee cost ratio improved 220bps YoY to 9.9%, demonstrating fixed-cost operating leverage.
- EPS grew +17.1% YoY to ₹57.45, with no equity dilution and clean alignment to PAT.
Key concerns
- Gross margin compressed ~260bps YoY as raw material cost of materials consumed rose to 48.1% of revenue (from 43.2% a year ago); input cost inflation outpaced pricing actions.
- EBITDA margin declined 200bps YoY to 13.4% despite operating leverage from employee costs, due to gross margin pressure and other expenses growing +49.7% YoY.
- Other expenses grew significantly faster than revenue (+49.7% YoY vs +33.1%), warranting monitoring for discretionary spending creep.
Research and educational content only. Not investment advice.