Kalyani Steels Q1 FY27 Results (NSE: KSL)
Signal: Growth reaccelerated
The read
The key inflection is a 40bps YoY EBITDA-margin improvement to 19.7% after the recent margin arc of +200bps in Q1FY26, -100bps in Q2FY26, +300bps in Q3FY26 and -100bps in Q4FY26; however, revenue declined 4.1% QoQ to ₹4,645.80 million and manufacturing expense grew 18.0% YoY, so the recovery remains margin-led rather than demand-led.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹464.58 Cr | +4.9% | -4.1% |
| EBIT | ₹77.83 Cr | +11.4% | |
| Net profit | ₹68.25 Cr | +10.6% | |
| EPS | ₹15.63 | +10.6% | |
| EBIT margin | 19.7% |
P&L walk
Revenue rose 4.9% YoY but fell 4.1% QoQ; EBITDA margin expanded to 19.7% YoY as raw-material and purchase intensity reduced to 52.4% of revenue, while PAT increased 10.6% with lower depreciation and finance costs.
Segments
The company reports a single forging and engineering quality carbon and alloy steel segment, while the subsidiary contributed ₹6.42 million of PAT and lifted consolidated PAT from standalone ₹676.06 million to ₹682.49 million.
Key positives
- Consolidated PAT increased 10.6% YoY to ₹682.49 million, ahead of 4.9% revenue growth, with EPS also up 10.6% to ₹15.63.
- EBITDA margin improved 40bps YoY to 19.7% as raw-material and purchase intensity declined 0.5 percentage points to 52.4% of revenue.
- Finance costs fell 32.1% YoY to ₹18.00 million and depreciation fell 8.9% YoY to ₹135.28 million, supporting EBIT growth of 11.4%.
Key concerns
- Revenue declined 4.1% QoQ to ₹4,645.80 million after ₹4,843.94 million in Q4FY26, while manufacturing expense still rose 3.8% QoQ to ₹774.20 million.
- Employee benefit expense increased 21.9% QoQ to ₹240.55 million and 8.3% YoY, outpacing revenue growth and limiting sequential margin expansion.
- The filing does not disclose steel volumes, realisations, capacity utilisation, order book or raw-material price drivers, leaving the source of the margin improvement unconfirmed.
Research and educational content only. Not investment advice.