Lords Chloro Q1 FY26 Results (NSE: LORDSCHLO)
Signal: Margin expansion
The read
Q1FY26 shows a sharp sequential profit rebound (+384% QoQ) from the low base of Q4FY26 (PAT ₹38.93 Cr), but YoY PAT growth of 43% is also solid. Key driver: operating margin expanded 188bps YoY and ~529bps QoQ as power/fuel costs normalised and raw material ratio improved. The EPS dilution (PAT +43% vs EPS +26%) from a larger equity base is a moderate concern for per‑share value creation. The ESOP scheme and increased borrowing limit (up to ₹500 Cr) signal ambition but also future dilution/debt risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10.63 Cr | 6.1% | 9.1% |
| EBIT | ₹1.63 Cr | 16.1% | |
| Net profit | ₹1.5 Cr | 43.1% | |
| EPS | ₹5.22 | 25.8% | |
| EBIT margin | 15.3% |
P&L walk
Consolidated not applicable — standalone-only filer
Key positives
- PAT ₹149.54 Cr, +43.1% YoY and +384% QoQ — strong rebound from Q4 low.
- EBITDA margin up ~188bps YoY to 17.7% on fixed‑cost absorption and input cost tailwind.
- Raw material cost ratio declined 186bps YoY (28.9% vs 30.9%) — pricing power or deflation.
- Power & fuel cost ratio improved 320bps sequentially — normalisation of energy costs.
Key concerns
- EPS growth (+25.8% YoY) lags PAT growth (+43.1%) — equity base expanded (₹28.65 Cr vs ₹25.15 Cr face value a year ago); likely dilution from bonus/rights issue.
- Depreciation fell 22.9% YoY — possible low capex in recent years may limit future capacity growth.
- Borrowing limit increase to ₹500 Cr (subject to AGM approval) could add leverage.
Research and educational content only. Not investment advice.