Lohia Corp Q1 FY27 Results (NSE: LCL)
Signal: Margin expansion
The read
The key inflection is operating margin: consolidated EBITDA margin expanded to 21.2% from approximately 12.7% YoY even as gross margin declined 90bps to 44.3%; revenue growth of 59.5% and employee-cost growth of 12.5% indicate substantial fixed-cost absorption, while the 1.5% QoQ revenue decline and 87bps QoQ margin contraction warrant monitoring after the post-IPO listing.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹503.02 Cr | +59.5% | -1.5% |
| EBIT | ₹93.69 Cr | N/A | |
| Net profit | ₹66.61 Cr | +292.4% | |
| EPS | ₹6.27 | +291.9% | |
| EBIT margin | 21.2% |
P&L walk
Consolidated revenue rose 59.5% YoY to ₹5,030.22 million, gross margin eased 90bps to 44.3%, while EBITDA margin increased 855bps to 21.2% as employee costs grew 12.5% and finance costs fell 25.7%; PAT increased 292.4% to ₹662.61 million.
Segments
The group reports one operating segment, manufacturing machines for the HDPE/PP woven fabric industry, so no segment-level momentum split is disclosed; standalone PAT of ₹732.74 million exceeded consolidated PAT of ₹662.61 million by ₹70.13 million, reflecting subsidiary drag.
Key positives
- Consolidated revenue increased 59.5% YoY to ₹5,030.22 million, while employee benefits expense rose only 12.5% to ₹533.58 million.
- Consolidated EBITDA margin expanded 855bps YoY to 21.2%, with depreciation broadly flat at ₹130.52 million and finance costs down 25.7% to ₹24.22 million.
- PAT rose 292.4% YoY to ₹662.61 million and EPS rose 291.9% to ₹6.27, with the PAT-to-EPS cross-check clean.
- Standalone revenue grew 63.3% YoY to ₹4,997.51 million and standalone EBITDA margin reached 22.4%, above the consolidated margin.
Key concerns
- Consolidated revenue declined 1.5% QoQ from ₹5,108.02 million to ₹5,030.22 million, while EBITDA margin contracted 87bps QoQ.
- Consolidated gross margin declined 90bps YoY to 44.3% as raw-material cost increased to 51.8% of revenue from 50.0%; the filing does not disclose the cause.
- Subsidiaries reduced consolidated PAT to ₹662.61 million versus standalone PAT of ₹732.74 million, a ₹70.13 million gap that requires monitoring for group-level earnings drag.
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