Jain Resource Q1 FY27 Results (NSE: JAINREC)
Signal: Margin pressure
The read
Q1FY27 revenue surged 75.9% YoY to ₹2,724 Cr led by scrap trading volume, but gross margin compressed 384bps to 6.2% on higher input costs, dragging EBITDA margin to 4.4%. PAT grew 21.2% YoY to ₹69 Cr but EPS growth lagged at 14.1% due to IPO dilution. Sequential revenue and margins improved from Q4FY26 but remain subdued vs year-ago levels; the key swing is raw material cost trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,724.46 Cr | 75.9% | -12.3% |
| EBIT | ₹114.29 Cr | 21.3% | |
| Net profit | ₹69.46 Cr | 21.2% | |
| EPS | ₹2.02 | 14.1% | |
| EBIT margin | 4.4% |
P&L walk
Revenue growth of 75.9% was volume-driven (scrap trading doubled), but gross margin fell 384bps as raw material share rose to 93.8% from 89.9%; EBITDA margin contracted 192bps YoY despite sequential improvement; PAT growth lagged on margin erosion.
Segments
Scrap Trading revenue more than doubled YoY to ₹1,837 Cr (67% of total), but its PBIT margin halved to 2.5% due to intense pricing; Copper segment revenue grew only 10% YoY but maintained ~7.6% PBIT margin, providing stability.
Key positives
- Revenue grew 75.9% YoY to ₹2,724 Cr, the highest for any Q1, driven by scrap trading volume doubling.
- Copper segment PBIT margin held at 7.6% despite input cost pressure, showing pricing discipline in that vertical.
- PAT grew 21.2% YoY to ₹69 Cr and improved sequentially by 5.2%.
Key concerns
- Gross margin compressed 384bps YoY to 6.2% as raw material cost % of revenue rose to 93.8% from 89.9% – driver not disclosed.
- EPS growth (14.1%) lagged PAT growth (21.2%) due to equity dilution from IPO fresh issue – 6.7% more shares outstanding.
- Scrap Trading segment PBIT margin fell to 2.5% from 4.7% a year ago, despite revenue doubling, indicating pricing pressure.
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