Lords Chloro Q1 FY27 Results (NSE: LORDSCHLO)
Signal: Steady quarter
The read
The operating trajectory improved in Q1FY27: revenue reached ₹106.35 Cr, +6.14% YoY, gross margin expanded 219bps as raw-material intensity fell to 28.85%, and EBITDA margin rose 86bps to 21.5%; however, PAT growth of 43.06% to ₹14.95 Cr was amplified by the tax rate falling to 8.17% from 25.50%, while EPS growth of 25.78% lagged PAT because of the larger equity base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹106.35 Cr | +6.14% | +8.94% |
| EBIT | ₹18.71 Cr | +12.47% | |
| Net profit | ₹14.95 Cr | +43.06% | |
| EPS | ₹5.22 | +25.78% | |
| EBIT margin | 21.5% |
P&L walk
Revenue increased to ₹106.35 Cr, +6.14% YoY and +8.94% QoQ, while EBITDA rose to ₹22.83 Cr and margin expanded to 21.5%; PAT growth of 43.06% was stronger than operating profit growth because the effective tax rate fell to 8.17% from 25.50%.
Key positives
- Revenue was ₹106.35 Cr, up 6.14% YoY and 8.94% QoQ, with the quarter showing sequential acceleration.
- Gross margin expanded 219bps YoY as raw-material cost declined to 28.85% of revenue, and EBITDA margin improved 86bps to 21.5%.
- Finance costs declined 7.14% YoY and 26.03% QoQ to ₹2.42 Cr, reducing the drag below EBIT.
Key concerns
- PAT growth of 43.06% to ₹14.95 Cr materially exceeded PBT growth of 16.12% because the tax rate fell to 8.17% from 25.50%; the earnings acceleration therefore has a non-operating tax component.
- EPS rose 25.78% to ₹5.22 versus PAT growth of 43.06%, with paid-up capital increasing to ₹28.65 Cr from ₹25.15 Cr YoY.
- Power and fuel charges increased 5.08% YoY to ₹42.82 Cr, reaching 40.25% of revenue and offsetting part of the raw-material benefit.
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