Jai Balaji Inds. Q1 FY27 Results (NSE: JAIBALAJI)
Signal: Steady quarter
The read
The operating inflection is sequential rather than fully earnings-led: EBITDA margin recovered to 9.2% from 5% in Q2FY26 after four consecutive quarters of contraction, while revenue grew 24.0% YoY; however, EBITDA growth of 8.2% lagged revenue by 15.8 percentage points, so the durability of the margin recovery remains unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,682.59 Cr | 24.0% | -3.6% |
| EBIT | ₹123.15 Cr | 9.6% | |
| Net profit | ₹85.23 Cr | 20.8% | |
| EPS | ₹0.93 | 20.8% | |
| EBIT margin | 9.2% |
P&L walk
Revenue increased to ₹1,682.59 Cr, +24.0% YoY but -3.6% QoQ, while gross margin expanded to 27.4% from 25.3% on lower materials intensity; EBITDA rose only 8.2% to ₹154.73 Cr, PAT rose 20.8% to ₹85.23 Cr, and lower finance cost supported the bottom line.
Key positives
- Revenue reached ₹1,682.59 Cr, +24.0% YoY, reversing the -21.0% YoY and -13.1% YoY declines reported in Q1FY26 and Q2FY26.
- Gross margin based on cost of materials expanded 210bps YoY to 27.4%, with materials intensity falling to 72.6% of revenue from 74.7%; the filing does not disclose whether this reflects input deflation, pricing or mix.
- EBITDA margin recovered to 9.2% from 5% in Q2FY26, while other expenses rose only 9.4% YoY against 24.0% revenue growth.
- Finance cost declined 21.5% YoY to ₹13.87 Cr, improving conversion from operating profit to PBT.
Key concerns
- EBITDA grew only 8.2% YoY to ₹154.73 Cr versus revenue growth of 24.0%, leaving the 9.2% margin recovery below the 13%-18% levels reported through FY24 and Q1FY25.
- Revenue declined 3.6% QoQ from ₹1,745.17 Cr despite the YoY recovery, and Q1FY27 EPS of ₹0.93 remained below Q4FY26 EPS of ₹1.42.
- Volume, realisation, utilisation, order book and cost-per-tonne data were not disclosed, limiting assessment of whether the revenue recovery is volume-led or price-led.
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