KSE Q1 FY27 Results (NSE: KSE)
Signal: Margin pressure
The read
The key inflection is a sharp profitability breakdown rather than a revenue problem: revenue grew 9.1% YoY to ₹45366.88 lakh, but raw-material cost rose to 82.4% of sales from 69.5%, EBITDA margin fell 1230bps to 0.7%, and PAT was partly supported by ₹355.75 lakh of other income and a ₹47.17 lakh insurance claim.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹453.67 Cr | 9.1% | 10.9% |
| EBIT | ₹1.5 Cr | -97.1% | |
| Net profit | ₹0.94 Cr | -97.6% | |
| EPS | ₹0.3 | -99.8% | |
| EBIT margin | 0.7% |
P&L walk
Revenue grew 9.1% YoY to ₹45366.88 lakh, but raw-material costs rose to 82.4% of revenue from 69.5%, compressing gross margin by 1293bps; EBITDA fell 93.9% to ₹332 lakh and PAT fell 97.6% to ₹94.43 lakh, with other income and an insurance claim cushioning the result.
Segments
Animal Feed drove the group with ₹37613.47 lakh of revenue and ₹309.19 lakh of segment profit, while Oil Cake Processing dragged results with a ₹374.35 lakh loss despite ₹11339.15 lakh of revenue; Dairy contributed ₹61.28 lakh of profit.
Key positives
- Revenue increased 9.1% YoY to ₹45366.88 lakh, with Animal Feed revenue up 11.2% YoY to ₹37613.47 lakh.
- Employee benefits and other expenses grew 7.4% YoY, below the 9.1% revenue growth rate, while finance costs rose only 3.7% YoY to ₹66.99 lakh.
- Dairy segment revenue grew 20.7% YoY to ₹1887.86 lakh and generated ₹61.28 lakh of segment profit.
- Segment assets increased 2.7% YoY to ₹42050.51 lakh alongside a 20.4% increase in depreciation, a clean depreciation-to-asset-base cross-check.
Key concerns
- Gross margin compressed 1293bps YoY to 17.6% as raw-material cost rose 1293bps to 82.4% of revenue, indicating that the company absorbed substantial input-cost pressure.
- EBITDA fell 93.9% YoY to ₹332 lakh and EBITDA margin declined to 0.7% from approximately 13.0%, showing severe operating pressure despite revenue growth.
- Oil Cake Processing reported a ₹374.35 lakh segment loss on ₹11339.15 lakh of revenue, offsetting the ₹309.19 lakh profit from Animal Feed.
- PAT of ₹94.43 lakh included ₹355.75 lakh of other income and a ₹47.17 lakh insurance claim, limiting earnings quality.
Earnings quality: includes other income and an exceptional item
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