Kanoria Chem. Q1 FY27 Results (NSE: KANORICHEM)
Signal: Loss reversed
The read
The operating inflection is real: EBITDA margin expanded to 11.2% from 9.3% YoY and marked the third consecutive quarter of margin expansion, with EBITDA growth of +177.1% outpacing revenue growth of +128.5%; however, gross margin compressed 703bps and PAT quality is diluted by ₹675 lakh of other income, including a ₹630 lakh NCRPS fair-value gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹460.37 Cr | +128.5% | +51.2% |
| EBIT | ₹42.56 Cr | +322.6% | |
| Net profit | ₹26.36 Cr | N/M (prior-year loss of ₹1,378 lakh) | |
| EPS | ₹6.03 | N/M (prior-year loss per share) | |
| EBIT margin | 9.2% |
P&L walk
Consolidated revenue rose to ₹46,037 lakh, +128.5% YoY and +51.2% QoQ, and EBITDA grew +177.1% to ₹5,176 lakh, lifting margin to 11.2%; PAT of ₹2,636 lakh was helped by ₹675 lakh of other income, including a ₹630 lakh NCRPS fair-value gain.
Segments
Chemicals drove the group with revenue of ₹42,999 lakh and segment result of ₹3,997 lakh, up from ₹18,654 lakh and ₹1,356 lakh; Textile also turned profitable at ₹259 lakh from a ₹349 lakh loss, on revenue of ₹3,038 lakh versus ₹1,484 lakh.
Key positives
- Consolidated EBITDA was ₹5,176 lakh, up 177.1% YoY versus revenue growth of 128.5%, with margin expanding 196bps to 11.2%.
- Employee costs grew only 9.9% YoY, depreciation 6.9% and finance costs 0.1%, all materially below revenue growth, supporting fixed-cost operating leverage.
- Chemicals segment result rose to ₹3,997 lakh from ₹1,356 lakh, while Textile turned around to a ₹259 lakh profit from a ₹349 lakh loss.
- Finance costs were ₹732 lakh, broadly flat YoY despite revenue growth of 128.5%.
Key concerns
- Gross margin compressed 703bps YoY to 22.1% despite revenue growth of 128.5%, indicating that the business absorbed an adverse cost or mix effect; the filing does not disclose the driver.
- Current PAT of ₹2,636 lakh includes ₹675 lakh of other income, including a ₹630 lakh NCRPS fair-value gain, so the recurring earnings base is below reported PAT.
- Textile subsidiary revenue was ₹3,038 lakh, but the auditor noted its ₹1 lakh group share of loss after tax before consolidation adjustments, requiring continued monitoring of subsidiary profitability.
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