Inox India Q1 FY27 Results (NSE: INOXINDIA)
Signal: Margin pressure
The read
Mixed quarter: revenue growth decelerated to 9.2% YoY (lowest in recent series), but gross margin expanded 508 bps on lower raw material costs. However, higher employee and other expenses compressed EBITDA margin by 275 bps, leading to a 5% PAT decline. The input cost tailwind was more than offset by fixed cost inflation. Post quarter, ₹939 Cr order win provides future revenue visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹370.79 Cr | 9.2% | -19.5% |
| EBIT | ₹77.18 Cr | -5.0% | |
| Net profit | ₹58.07 Cr | -5.0% | |
| EPS | ₹6.4 | -4.9% | |
| EBIT margin | 23.4% |
P&L walk
Revenue grew 9.2% YoY but EBITDA margin compressed 275 bps as employee costs (+24.7%) and other expenses (+14.5%) outpaced revenue growth. Gross margin expanded 508 bps on lower raw material costs. Net profit fell 5.0% YoY.
Key positives
- Gross margin expanded 508 bps YoY to 61.1% as raw material cost fell to 38.9% of revenue from 43.9%.
- Revenue grew 9.2% YoY, maintaining positive growth despite high base.
- Earnings quality is clean — other income below 20% of PBT.
- No exceptional items in current quarter.
Key concerns
- EBITDA margin contracted 275 bps YoY to 23.4% as employee costs grew 24.7% and other expenses 14.5% — both outpaced revenue.
- Net profit declined 5% YoY, first drop in recent quarters.
- Revenue growth decelerated sharply from 24.9% in Q4FY26 to 9.2%.
- Finance costs doubled YoY, indicating higher working capital borrowing.
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