Linde India Q1 FY27 Results (NSE: LINDEINDIA)
Signal: Margin pressure
The read
The key inflection is a revenue recovery to ₹6,943.63 million, +21.6% YoY after the recent low-growth period, but the margin arc has reversed: EBITDA margin contracted to 29.7% from 35.3% a year ago, the second consecutive quarter of contraction after Q4FY26's 700bps decline, because material intensity rose to 27.1% of revenue from 21.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹694.36 Cr | 21.6% | +13.0% |
| EBIT | ₹143.99 Cr | -0.9% | |
| Net profit | ₹104.59 Cr | -2.4% | |
| EPS | ₹12.26 | -2.5% | |
| EBIT margin | 29.7% |
P&L walk
Revenue recovered to ₹6,943.63 million, +21.6% YoY and +13.0% QoQ, but raw-material intensity rose to 27.1% of revenue from 19.5% and EBITDA margin contracted to 29.7% from 35.3%, driving PAT down 2.4% YoY despite ₹16.29 million of joint-venture profit.
Segments
Gases remained the earnings engine with ₹5,444.16 million revenue and ₹1,322.36 million result, while project engineering revenue fell 11.6% YoY to ₹2,245.64 million and result fell 13.9% to ₹234.62 million despite an 82.6% sequential result recovery.
Key positives
- Revenue recovered to ₹6,943.63 million, +21.6% YoY and +13.0% QoQ, reversing the contraction seen through Q1FY26.
- Operating expenses excluding materials grew 3.8% YoY versus 21.6% revenue growth, providing evidence of cost discipline even though gross-margin compression limited EBITDA conversion.
- Project-engineering result recovered 82.6% QoQ to ₹234.62 million, while gases remained profitable at ₹1,322.36 million.
- Consolidated PAT of ₹1,045.94 million was only 2.4% below last year and EPS of ₹12.26 tracked PAT, with the pat-to-eps check clean.
Key concerns
- Gross margin contracted approximately 760bps YoY as raw-materials, purchases and inventory change rose to ₹1,882.34 million, or 27.1% of revenue, from 21.0%; the filing does not disclose the cause.
- EBITDA grew only 2.5% YoY to ₹206.4 million against 21.6% revenue growth, and EBITDA margin fell to 29.7% from 35.3%.
- Project-engineering revenue declined 11.6% YoY to ₹2,245.64 million and segment result declined 13.9% to ₹234.62 million, leaving the group increasingly dependent on gases.
- Finance costs rose 88.5% YoY to ₹59.42 million and 123.4% QoQ, though the absolute level remains small.
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