Kokuyo Camlin Q1 FY27 Results (NSE: KOKUYOCMLN)
Signal: Margin pressure
The read
The key trajectory issue is gross-margin erosion: revenue grew only 1.1% YoY to ₹22,918.11 lakh while gross margin compressed 1,410bps to 35.2% and EBITDA fell approximately 20.1% to ₹1,568.00 lakh; lower finance cost and depreciation improved the QoQ EBITDA margin by 200bps, but did not offset the YoY earnings deterioration.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹229.18 Cr | +1.1% | +1.3% |
| EBIT | ₹10.43 Cr | -27.3% | |
| Net profit | ₹7.3 Cr | -27.4% | |
| EPS | ₹0.73 | -70.4% | |
| EBIT margin | 6.8% |
P&L walk
Revenue of ₹22,918.11 lakh grew 1.1% YoY, but gross margin fell 1,410bps to 35.2% as total material and trading-related costs rose faster than revenue; EBITDA declined 20.1% and PAT declined 27.4%, while lower finance cost and depreciation supported the sequential recovery.
Key positives
- Revenue increased 1.1% YoY to ₹22,918.11 lakh and 1.3% QoQ, indicating modest top-line stability after the prior quarter.
- Finance costs declined 35.0% YoY to ₹59.96 lakh and depreciation declined 0.8% YoY to ₹524.56 lakh, supporting the sequential EBITDA-margin recovery to 6.8% from approximately 4.8%.
Key concerns
- Gross margin compressed 1,410bps YoY to 35.2% as material and trading-related costs rose to ₹14,843.42 lakh from ₹11,498.02 lakh; the filing does not disclose the cause, and the company appears to have absorbed cost pressure rather than fully passing it through.
- EBITDA declined approximately 20.1% YoY to ₹1,568.00 lakh while revenue grew 1.1%, showing no operating leverage and weaker earnings conversion.
- Employee and other expenses rose 3.9% YoY to ₹6,516.05 lakh, faster than revenue growth of 1.1%.
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