Kusumgar Q1 FY27 Results (NSE: KUSUMGAR)
Signal: Margin expansion
The read
The main inflection is YoY margin expansion rather than sequential acceleration: consolidated revenue rose 101.9% YoY to ₹2472.47 million and derived EBITDA rose 226.0% to ₹754.18 million, expanding EBITDA margin by 1160bps, but revenue fell 21.0% QoQ and PAT fell 48.0% from the preceding quarter; the improvement is supported by fixed-cost absorption, while the EPS cross-check flags dilution from the CCPS conversion and ESOP overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹247.25 Cr | +101.9% | -21.0% |
| Net profit | ₹42.65 Cr | +541.5% | |
| EPS | ₹4.18 | +533.3% | |
| EBIT margin | 30.5% |
P&L walk
Consolidated revenue of ₹2472.47 million grew 101.9% YoY but fell 21.0% QoQ; gross margin was broadly stable YoY at 63.2%, while EBITDA margin expanded to 30.5% as employee and other expenses grew slower than revenue, although PAT declined 48.0% sequentially from the high Q4 base.
Key positives
- Consolidated revenue reached ₹2472.47 million, up 101.9% YoY, while derived EBITDA grew 226.0% to ₹754.18 million, a +124.1pp growth gap over revenue.
- EBITDA margin expanded 1160bps YoY to 30.5%; employee costs declined 2.0% YoY, depreciation grew 18.6% and finance costs declined 10.5%, supporting fixed-cost absorption.
- Consolidated gross margin remained broadly stable at 63.2%, only 90bps below the year-ago 64.1%, despite raw materials consumed rising to 45.3% of revenue from 41.6%.
Key concerns
- Sequential momentum weakened: revenue declined 21.0% QoQ to ₹2472.47 million and PAT declined 48.0% QoQ to ₹426.47 million.
- The filing does not disclose textile volumes, realisations, capacity utilisation or order book, limiting assessment of whether the 101.9% YoY revenue growth is volume-led or mix-led.
- Basic EPS growth of 533.3% lagged PAT growth of 541.5%, and the company converted 35,01,372 CCPS into equity shares while granting 21,87,782 ESOP options.
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