Hindware Home In Q1 FY27 Results (NSE: HINDWAREAP)
Signal: Loss reversed
The read
The key inflection is the return to positive consolidated PAT of ₹4.35 crore from a ₹29.20 crore loss as EBITDA margin expanded to 8.61% from roughly 7% in the prior-year and immediately preceding quarters; however, revenue declined 5.7% QoQ, building-products segment profit fell 39.5% QoQ, and the improvement included a ₹0.83 crore exceptional reversal.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹625.25 Cr | +17.7% | -5.7% |
| EBIT | ₹23.91 Cr | -13.1% | |
| Net profit | ₹4.35 Cr | +114.9% from -29.20 Cr | |
| EPS | ₹0.52 | N/M; turned positive from -₹3.48 | |
| EBIT margin | 8.61% |
P&L walk
Revenue increased to ₹625.25 crore, +17.7% YoY but -5.7% QoQ; gross margin was 47.5%, down 54bps YoY but up 310bps QoQ, EBITDA was ₹53.85 crore with operating margin up 200bps YoY, and PAT improved to ₹4.35 crore from a ₹29.20 crore loss despite a ₹0.86 crore joint-venture loss.
Segments
Building products drove the recovery with revenue of ₹540.26 crore, +17.5% YoY, and segment result of ₹23.56 crore, while consumer appliances turned from a ₹5.29 crore loss QoQ to a ₹0.34 crore profit but remained small at ₹85.08 crore of revenue.
Key positives
- Consolidated revenue reached ₹625.25 crore, +17.7% YoY, reversing the -11.5% YoY decline reported in Q1FY26.
- EBITDA was ₹53.85 crore and operating margin expanded by 200bps YoY to 8.61%; employee cost rose 13.7% YoY, 4.0 percentage points slower than revenue growth.
- Consumer appliances segment result turned positive at ₹0.34 crore from a ₹5.29 crore QoQ loss, indicating early benefit from exiting high-loss categories.
- Finance cost declined 3.0% YoY to ₹17.40 crore, improving the conversion of operating earnings into pre-tax profit.
Key concerns
- Revenue declined 5.7% QoQ to ₹625.25 crore, while building-products segment result fell 39.5% QoQ to ₹23.56 crore despite revenue remaining ₹540.26 crore.
- Gross margin compressed 54bps YoY to 47.5%, and the filing does not disclose whether the change reflects pricing, input costs or mix.
- Consolidated PAT of ₹4.35 crore included a ₹0.83 crore exceptional reversal and was partly offset by a ₹0.86 crore joint-venture loss, limiting the quality of the earnings recovery.
- Standalone PAT was only ₹0.66 crore versus consolidated PAT of ₹4.35 crore, underscoring dependence on subsidiary earnings.
Research and educational content only. Not investment advice.