Kothari Products Q1 FY27 Results (NSE: KOTHARIPRO)
Signal: Margin pressure
The read
The key inflection is a sharp standalone recovery without a group-level earnings recovery: consolidated EBITDA margin fell to 2.6% from approximately 9.8% YoY and PAT fell 58.5% to ₹750 lakh, with ₹741 lakh of associate profit and ₹1989 lakh of other income making the bottom line less operationally durable.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹269.89 Cr | 8.6% | -14.7% |
| EBIT | ₹6.4 Cr | -75.8% | |
| Net profit | ₹7.5 Cr | -58.5% | |
| EPS | ₹1.26 | -58.4% | |
| EBIT margin | 2.6% |
P&L walk
Revenue increased to ₹26989 lakh, +8.6% YoY but -14.7% QoQ; EBITDA declined 74.1% YoY to ₹698 lakh with margin at 2.6%, while PAT fell 58.5% to ₹750 lakh despite ₹741 lakh of associate profit and ₹1989 lakh of other income.
Segments
Trading items remained the larger revenue unit at ₹27380 lakh but its result fell 65.7% YoY to ₹656 lakh, while real estate generated ₹725 lakh, +6.3% YoY, and contributed disproportionately to consolidated segment profit.
Key positives
- Standalone revenue rose 169.3% YoY to ₹17774 lakh and standalone EBITDA rose 131.1% to ₹2071 lakh, indicating a strong parent-company operating recovery.
- Trading segment result recovered to ₹656 lakh from a loss of ₹1449 lakh QoQ, while real-estate segment result remained positive at ₹725 lakh.
- Consolidated finance costs declined 48.2% YoY to ₹155 lakh, reducing pressure below EBITDA.
Key concerns
- Consolidated EBITDA fell 74.1% YoY to ₹698 lakh and margin contracted approximately 720bps to 2.6%, despite revenue growth of 8.6%.
- Trading items, the main revenue engine at ₹27380 lakh, saw segment result decline 65.7% YoY to ₹656 lakh.
- Standalone PAT of ₹1385 lakh and consolidated PAT of ₹750 lakh diverged materially, showing that subsidiaries, associates and consolidation effects drag group earnings relative to the parent.
- Other income of ₹1989 lakh represented 410.1% of consolidated PBT, making reported PAT materially dependent on non-operating income.
Earnings quality: includes non-operating other income
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