Igarashi Motors Q1 FY27 Results (NSE: IGARASHI)
Signal: Steady quarter
The read
The quarter shows a meaningful profit recovery, with revenue at ₹25,086.82 lakh, +22.55% YoY, and EBITDA margin at 10.2%, but the core margin trajectory is less clean: gross margin compressed 189bps as raw-material cost rose to 65.69% of revenue, while PAT was additionally lifted by a ₹143.26 lakh prior-year tax-provision reversal.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹250.87 Cr | +22.55% | +11.02% |
| EBIT | ₹9.78 Cr | N/A | |
| Net profit | ₹6.77 Cr | +169.63% | |
| EPS | ₹2.15 | +168.75% | |
| EBIT margin | 10.2% |
P&L walk
Standalone revenue increased to ₹25,086.82 lakh, +22.55% YoY and +11.02% QoQ, but gross margin compressed 189bps YoY as raw-material cost rose to 65.69% of revenue; EBITDA margin was 10.2%, while PAT growth to ₹676.69 lakh was aided by the tax reversal.
Segments
Automotive remains the earnings engine at ₹21,803.59 lakh revenue and ₹2,807.70 lakh segment result, while non-automotive revenue grew 19.87% YoY to ₹3,283.23 lakh but segment result fell 59.32% YoY to ₹23.95 lakh, leaving it nearly breakeven.
Key positives
- Revenue reached ₹25,086.82 lakh, +22.55% YoY and +11.02% QoQ, with Automotive revenue up 22.96% YoY to ₹21,803.59 lakh.
- Employee benefit plus other expenses rose 12.36% YoY versus revenue growth of 22.55%, reducing combined opex intensity.
- Automotive segment result increased 21.03% YoY to ₹2,807.70 lakh, supporting the consolidated operating recovery.
- Finance costs declined 17.10% YoY to ₹262.53 lakh, improving the below-EBIT burden.
Key concerns
- Gross margin compressed 189bps YoY to 32.77% as raw-material cost rose to 65.69% of revenue from 63.96%; with revenue growing but margin falling, the company appears to have absorbed part of the cost pressure and the filing does not disclose a driver.
- Non-automotive segment result fell 59.32% YoY to ₹23.95 lakh despite 19.87% revenue growth, indicating weak conversion in that business.
- EBITDA margin is 10.2%, but YoY and QoQ comparative EBITDA margins were not disclosed, limiting confirmation of the operating-margin trajectory.
Research and educational content only. Not investment advice.