Mallcom (India) Q1 FY27 Results (NSE: MALLCOM)
Signal: Revenue declined
The read
Disastrous quarter: revenue down 10.9% YoY, EBITDA margin contracting 229bps to 7.84%, and PAT plunging 62.3% – the worst since at least FY24. The export business (-35.8% YoY) collapsed, while domestic growth could not offset the fall. Input costs rose sharply (raw material % jumped 370bps), and manufacturing expenses grew 13.9% YoY despite lower revenue, indicating severe cost absorption issues. The standalone entity fared better but group profitability was dragged by subsidiaries.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹109.09 Cr | -10.9% | -20.6% |
| EBIT | ₹8.55 Cr | -66.3% | |
| Net profit | ₹6.19 Cr | -62.3% | |
| EPS | ₹9.92 | -62.3% | |
| EBIT margin | 7.84% |
P&L walk
Revenue fell 10.9% YoY with exports plunging 35.8% while domestic sales rose 21.7%. Gross margin compressed >300bps as raw material % jumped, and manufacturing/other operational expenses surged 13.9% YoY, far outpacing revenue. EBITDA margin fell 229bps YoY to 7.84%. Finance cost rose 29.4% YoY, adding pressure. PAT collapsed 62.3% YoY – the worst quarterly performance in over 2 years.
Segments
The company operates as a single segment – Industrial Safety Products. The revenue split shows exports (₹4,541 Lakh, -35.8% YoY) dragging total revenue, while domestic sales (₹6,308 Lakh, +21.7% YoY) provided partial offset.
Key positives
- Domestic revenue grew 21.7% YoY, indicating strong home-market demand for industrial safety products.
Key concerns
- Export revenue collapsed 35.8% YoY, the biggest driver of the top-line decline.
- EBITDA margin contracted 229bps YoY to 7.84%, the second straight quarter of meaningful margin erosion.
- Raw material cost as % of revenue rose 370bps YoY to 67.6%, signalling input cost pressure or unfavourable mix.
- Manufacturing and other operational expenses grew 13.9% YoY despite a 10.9% revenue decline – a major cost absorption red flag.
- Consolidated PAT dropped 62.3% YoY, the steepest decline in recent history.
- Subsidiaries (Mallcom Safety Pvt Ltd & Mallcom VSFT Gloves Pvt Ltd) reported combined revenue of only ₹1,554 Lakh with negligible profit, dragging group performance.
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