K C P Q1 FY27 Results (NSE: KCP)
Signal: Growth reaccelerated
The read
The quarter shows a sharp consolidated revenue recovery to ₹779.34 Cr, +15.2% YoY, but operating conversion is fragile: sugar revenue rose 35.5% while sugar EBIT fell 42.2%, owners' PAT fell 42.0% to ₹36.83 Cr, and ₹26.82 Cr of other income represented 48% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹779.34 Cr | +15.2% | +14.0% |
| EBIT | ₹65.88 Cr | N/A | |
| Net profit | ₹36.83 Cr | -42.0% | |
| EPS | ₹2.86 | -41.9% | |
| EBIT margin | 11.7% |
P&L walk
Revenue increased to ₹779.34 Cr, +15.2% YoY and +14.0% QoQ, while EBITDA was ₹91.03 Cr and PAT attributable to owners fell to ₹36.83 Cr, with sugar EBIT down 42.2% YoY and other income of ₹26.82 Cr equal to 48% of PBT.
Segments
Sugar drove the consolidated result with ₹390.67 Cr of revenue and ₹38.31 Cr of EBIT, but sugar EBIT fell 42.2% YoY; cement revenue was broadly flat at ₹357.98 Cr and generated only ₹2.24 Cr of EBIT, while the standalone parent earned just ₹0.48 Cr versus consolidated owners' PAT of ₹36.83 Cr.
Key positives
- Consolidated revenue reached ₹779.34 Cr, up 15.2% YoY and 14.0% QoQ, led by sugar revenue of ₹390.67 Cr, up 35.5% YoY.
- Raw material cost declined to 63.6% of consolidated revenue from 79.1% YoY, expanding gross margin by 1,545bps, although the filing does not disclose the driver.
- Consolidated segment assets rose to ₹3,822.41 Cr from ₹3,490.17 Cr YoY while depreciation rose 13.8% to ₹25.15 Cr, a clean asset-base cross-check.
- The company declared an interim dividend of ₹0.50 per share and approved entry into colour paints, building materials, and builders and developers.
Key concerns
- Sugar EBIT fell 42.2% YoY to ₹38.31 Cr despite sugar revenue rising 35.5% to ₹390.67 Cr, indicating materially weaker profitability in the main consolidated earnings engine.
- Owners' PAT declined 42.0% YoY to ₹36.83 Cr and EPS fell 41.9% to ₹2.86, despite 15.2% revenue growth.
- Standalone PAT fell 96.6% YoY to ₹0.48 Cr from ₹14.28 Cr, showing that group earnings are heavily dependent on the subsidiary rather than the parent operations.
- Finance cost rose 11.6% YoY to ₹9.97 Cr and 56.5% QoQ, while freight and forwarding expense rose 11.5% YoY to ₹102.39 Cr.
Earnings quality: includes non-operating other income
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