IOL Chemicals Q1 FY27 Results (NSE: IOLCP)
Signal: Growth reaccelerated
The read
The trajectory has clearly inflected upward: revenue growth accelerated to 37.1% YoY from 10.0% in Q1FY26, EBITDA grew 60.7% versus revenue growth of 37.1% and EBITDA margin reached 14.8%, while PAT rose 89.8% to ₹64.4 crore; the key confirmation point is whether the approximately 36.8% gross margin and sixth consecutive quarter of YoY operating-margin expansion persist.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹756.26 Cr | 37.1% | 22.1% |
| EBIT | ₹90.33 Cr | 81.6% | |
| Net profit | ₹64.4 Cr | 89.8% | |
| EPS | ₹2.2 | 89.7% | |
| EBIT margin | 14.8% |
P&L walk
Revenue increased to ₹756.26 crore (+37.1% YoY, +22.1% QoQ); gross margin expanded to approximately 36.8% from 34.0% YoY as raw-material intensity fell to 66.9% from 68.3%; EBITDA rose 60.7% YoY to ₹111.67 crore and margin reached 14.8%, while PAT grew 89.8% to ₹64.4 crore with limited dependence on other income.
Segments
Pharmaceuticals drove the group, with revenue of ₹469.49 crore (+42.6% YoY) and PBIT of ₹68.81 crore (+71.6% YoY), while chemicals also accelerated with revenue of ₹364.96 crore (+29.9%) and PBIT of ₹17.32 crore (+193.1%).
Key positives
- Revenue of ₹756.26 crore grew 37.1% YoY, led by pharmaceutical revenue growth of 42.6% and chemical revenue growth of 29.9%.
- EBITDA grew 60.7% YoY versus revenue growth of 37.1%, a +23.6 percentage-point gap; employee costs grew 23.5%, depreciation 7.9% and finance costs declined 13.9% YoY, with EBITDA margin at 14.8%.
- Gross margin expanded approximately 280bps YoY to 36.8% as raw-material cost declined to 66.9% of revenue from 68.3%; the driver was not disclosed.
- Pharmaceutical PBIT rose 71.6% YoY to ₹68.81 crore, providing the largest contribution to consolidated segment profit.
Key concerns
- Sequential gross margin declined approximately 310bps from 39.9% to 36.8%, so the YoY input-cost tailwind requires confirmation in subsequent quarters.
- Other expenses increased 53.1% YoY to ₹103.58 crore, faster than revenue growth of 37.1%, potentially limiting further operating-margin expansion if sustained.
Research and educational content only. Not investment advice.