Kronox Lab Q1 FY27 Results (NSE: KRONOX)
Signal: Steady quarter
The read
The quarter shows healthy 16.9% YoY revenue growth to ₹28.39 Cr and 16.2% PAT growth to ₹7.3 Cr, but the key trajectory issue is a 440bps gross-margin contraction as raw-material intensity rose to 53.2% of revenue; EBITDA margin still expanded only 80bps to 36.3%, leaving the next results to confirm whether the input-cost pressure is transient.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹28.39 Cr | 16.9% | +8.3% |
| EBIT | ₹9.84 Cr | 16.6% | |
| Net profit | ₹7.3 Cr | 16.2% | |
| EPS | ₹2 | 17.6% | |
| EBIT margin | 36.3% |
P&L walk
Standalone revenue was ₹28.39 Cr, +16.9% YoY and +8.3% QoQ, while EBITDA reached ₹10.3 Cr, +16.5% YoY, indicating broadly stable operating conversion despite gross-margin compression; PAT rose to ₹7.3 Cr, +16.2% YoY.
Key positives
- Revenue reached ₹28.39 Cr, +16.9% YoY and +8.3% QoQ, showing acceleration versus the year-ago base.
- EBITDA rose 16.5% YoY to ₹10.3 Cr and EBITDA margin expanded 80bps to 36.3% despite gross-margin pressure.
- EPS increased 17.6% YoY to ₹2, ahead of PAT growth of 16.2%, with no evidence of dilution.
Key concerns
- Gross margin fell 440bps YoY to 47.1% as raw-material and inventory-related costs rose to 53.2% of revenue from 52.2%; the filing does not disclose the reason or the extent of pass-through.
- PAT growth of 16.2% broadly matched revenue growth of 16.9%, so the quarter did not demonstrate meaningful earnings conversion expansion.
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