Liberty Shoes Q1 FY27 Results (NSE: LIBERTSHOE)
Signal: Revenue declined
The read
The key inflection is a sharp earnings deterioration: revenue fell 1.7% YoY to ₹16,985.67 lakh, EBITDA fell 16.2% to ₹1,353 lakh and PAT fell 79.6% to ₹68.37 lakh; gross margin was stable at 54.9%, so the weakness is concentrated in operating-cost intensity, depreciation and finance costs rather than raw-material inflation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹169.86 Cr | -1.7% | -19.9% |
| EBIT | ₹5.54 Cr | -33.2% | |
| Net profit | ₹0.68 Cr | -79.6% | |
| EPS | ₹0.4 | -79.5% | |
| EBIT margin | 8% |
P&L walk
Revenue declined 1.7% YoY to ₹16,985.67 lakh and EBITDA fell 16.2% to ₹1,353 lakh, with EBITDA margin at 8%; finance costs rose 11.4% to ₹425.42 lakh and PAT fell 79.6% to ₹68.37 lakh.
Key positives
- Gross margin held broadly stable at 54.9% YoY, with raw material and traded goods cost at 45.1% of revenue versus 45.2% a year earlier.
- EPS declined 79.5% YoY to ₹0.40 versus a 79.6% PAT decline to ₹68.37 lakh, indicating no material dilution divergence.
- Other income was only ₹2.40 lakh, so the reported PAT decline was not obscured by treasury income.
Key concerns
- Revenue declined 1.7% YoY to ₹16,985.67 lakh, while EBITDA fell 16.2% to ₹1,353 lakh and EBITDA margin was reported at 8%.
- Employee benefits expense rose 7.5% YoY to ₹3,810.67 lakh despite the 1.7% revenue decline, increasing employee-cost intensity to 22.4% of revenue.
- Finance costs increased 11.4% YoY to ₹425.42 lakh, worsening the conversion of operating profit into PAT.
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