Indo Rama Synth. Q1 FY27 Results (NSE: INDORAMA)
Signal: Margins at cyclical peak
The read
Revenue crashed 28% YoY due to West Asia volume disruption, yet PAT rose 21% as EBITDA margin expanded 388bps — the 5th consecutive quarter of margin expansion — driven by improved product mix and cost control. Volume headwinds are the key concern; margin resilience is the positive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹936.64 Cr | -28.3% | -22.1% |
| EBIT | ₹108.04 Cr | 7.7% | |
| Net profit | ₹63.74 Cr | 20.8% | |
| EPS | ₹2.44 | 20.8% | |
| EBIT margin | 11.54% |
P&L walk
Revenue declines sharply (-28.3% YoY) on volume impact from West Asia issues, but EBITDA margin expands 388bps to 11.54% driven by improved product mix and margins.
Key positives
- EBITDA margin expanded 388bps YoY to 11.54%, 5th straight quarter of expansion.
- PAT grew 20.8% YoY despite 28.3% revenue decline, driven by margin improvement.
- Finance cost nearly flat (+1.2% YoY) despite revenue drop, indicating better working capital management.
Key concerns
- Revenue declined 28.3% YoY and 22.1% QoQ due to volume impact from West Asia geo-political issues.
- Standalone revenue fell 31.0% YoY, sharper than consolidated, implying subsidiaries partly offset weakness.
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