Jindal Poly Film Q1 FY27 Results (NSE: JINDALPOLY)
Signal: Margin expansion
The read
The apparent earnings inflection is low quality: consolidated EBITDA margin expanded to 23% despite revenue down 35.8% YoY, but PAT of ₹10,719.71 lakh was dominated by ₹15,008.90 lakh of other income, while the parent still absorbed a ₹22,350 lakh provision for a subsidiary loan and the packaging-films segment remained loss-making.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹695.8 Cr | -35.8% | +3.1% |
| EBIT | ₹116.96 Cr | 15.4% | |
| Net profit | ₹108 Cr | 192.9% | |
| EPS | ₹24.48 | 193.5% | |
| EBIT margin | 23% |
P&L walk
Revenue fell 35.8% YoY to ₹69,579.62 lakh, while EBITDA was broadly stable at ₹15,998 lakh and PAT rose 192.9% to ₹10,719.71 lakh, primarily because other income was ₹15,008.90 lakh and not because of sales growth.
Segments
Nonwoven fabrics drove the group with revenue up 12.3% YoY to ₹19,071.28 lakh and segment result of ₹3,280.44 lakh, while packaging films dragged with revenue down 50.8% to ₹41,495.11 lakh and a ₹2,225.58 lakh segment loss.
Key positives
- EBITDA was ₹15,998 lakh, up 0.3% YoY despite revenue declining 35.8%, resulting in a 23% EBITDA margin.
- Nonwoven fabrics revenue grew 12.3% YoY to ₹19,071.28 lakh and generated a ₹3,280.44 lakh segment result.
- Finance costs declined 42.4% YoY to ₹3,003.57 lakh at the consolidated level.
- EPS of ₹24.48 grew 193.5% YoY, broadly tracking PAT growth of 192.9%.
Key concerns
- Consolidated revenue fell 35.8% YoY to ₹69,579.62 lakh, with packaging films revenue down 50.8% to ₹41,495.11 lakh.
- Standalone results remain impaired by subsidiary exposure: a ₹22,350 lakh loan provision produced a ₹9,497.23 lakh parent loss despite standalone revenue growth of 12.3%.
- Packaging films reported a ₹2,225.58 lakh segment loss, indicating that the core group revenue decline has not yet translated into a durable operating recovery.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.