Kamdhenu Q1 FY27 Results (NSE: KAMDHENU)
Signal: Margin expansion
The read
Q1FY27 marks Kamdhenu's highest ever PBT and PAT at ₹3,642.86 lakh and ₹2,868.81 lakh respectively. The headline beat is a mix of robust core operating performance (revenue +9.0% YoY, EBITDA margin +175bps YoY to 15.81%) and a large other-income tailwind (₹1,738.93 lakh, up 101.6% YoY, largely unrealized gains on investments). The input cost tailwind (raw material % down 125bps YoY) drove gross margin expansion. However, employee costs grew faster than revenue (+20.8% YoY) — a cost creep to watch. The 5 MW solar plant commissioned in early FY27 is expected to save ₹4-5 Cr annually (claim 486 still open). With P/E at 12.53x vs industry 21.53x and strong ROCE (29.39%), the trajectory remains positive but tempered by the need to sustain operating margin ex-investment gains.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹213.35 Cr | 9.0% | 2.8% |
| EBIT | ₹33.73 Cr | 18.1% | |
| Net profit | ₹28.69 Cr | 33.9% | |
| EPS | ₹1.02 | 34.2% | |
| EBIT margin | 15.81% |
P&L walk
Standalone entity — no consolidated statements filed.
Key positives
- Highest ever quarterly PBT (₹3,642.86 lakh) and PAT (₹2,868.81 lakh).
- EBITDA margin expanded 175bps YoY to 15.81% — fourth consecutive quarter of YoY PAT growth (Q4FY21 through Q1FY27).
- Gross margin improved 153bps YoY as raw material cost % of revenue declined from 70.4% to 69.1%.
- Revenue grew 9.0% YoY to ₹21,335.46 lakh, with provisional steel sales volume +6.8% YoY (own sales) and +8.9% (total brand sales).
- Near debt-free balance sheet (D/E 0.02); finance cost at only ₹21.90 lakh.
- 5 MW solar plant commissioned, expected to save ₹4-5 Cr annually (claim 486 — open, trackable).
- Valuation attractive: P/E 12.53x vs industry 21.53x, PEG 0.52.
Key concerns
- Other income of ₹1,738.93 lakh includes ₹1,590.66 lakh unrealized gain on investments — volatile and non-recurring; PAT growth of 33.9% YoY is inflated by this (core profit ex-other income grew 18.1% YoY on ebit basis).
- Employee costs grew 20.8% YoY, significantly outpacing revenue growth (+9.0% YoY) — margin headwind.
- Depreciation jumped 38.9% YoY as new solar plant and other capex went live, will pressure margins going forward.
- Finance cost surged 657.1% YoY (though from negligible base of ₹2.89 lakh); absolute level still low.
Research and educational content only. Not investment advice.