La Opala RG Q1 FY27 Results (NSE: LAOPALA)
Signal: Margin pressure
The read
The key inflection is a return to 9.3% YoY revenue growth from the recent negative sales trajectory, but the quality of the recovery is mixed: EBITDA grew only 3.2% and margin contracted to 55.5%, while ₹1,369.00 lakh of other income represented 41% of PBT and materially cushioned PAT growth of 3.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹71.36 Cr | 9.3% | +4.3% |
| EBIT | ₹34.27 Cr | 2.6% | |
| Net profit | ₹26.2 Cr | 3.4% | |
| EPS | ₹2.36 | 3.5% | |
| EBIT margin | 55.5% |
P&L walk
Standalone revenue increased to ₹7,135.80 lakh, +9.3% YoY and +4.3% QoQ, while gross margin expanded 220bps YoY to 77.4%; EBITDA grew only 3.2% and PAT 3.4%, with ₹1,369.00 lakh of other income materially supporting pre-tax profit.
Key positives
- Revenue increased to ₹7,135.80 lakh, +9.3% YoY and +4.3% QoQ, reversing the prior negative sales trend indicated by the company's recent history.
- Gross margin expanded 220bps YoY to 77.4% as raw material cost declined to 22.6% of revenue from 24.8%, although the filing does not identify the driver.
- EPS increased 3.5% YoY to ₹2.36 and tracked PAT growth of 3.4%, with no dilution warning from the PAT-to-EPS cross-check.
Key concerns
- EBITDA grew only 3.2% YoY to ₹3,962.00 lakh versus revenue growth of 9.3%, implying a 320bps EBITDA-margin contraction to 55.5%.
- Power and fuel expense increased to 21.8% of revenue from 20.0% YoY, offsetting the gross-margin improvement and requiring monitoring as revenue growth recovers.
- The filing does not disclose volume, realisation, product mix or capacity-utilisation data, limiting confidence in the source of the 9.3% revenue growth.
Earnings quality: includes non-operating other income
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