Manaksia Coated Q1 FY27 Results (NSE: MANAKCOAT)
Signal: Margin expansion
The read
Margin expansion story intact — 4th straight quarter of OPM expansion (+100bps YoY to 11%) — but top-line growth decelerated sharply to +4.9% YoY (vs +28.9% in Q1FY26) and PAT was flat as finance costs surged 50% and other income collapsed 78%. Equity dilution caused EPS to decline YoY despite flat PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹262.14 Cr | 4.94% | 15.27% |
| Net profit | ₹14.1 Cr | 0.67% | |
| EPS | ₹1.33 | ||
| EBIT margin | 11% |
P&L walk
Revenue growth slowed to +4.9% YoY (vs +28.9% YoY in Q1FY26) but margins improved 100bps YoY to 11% OPM, marking the 4th straight quarter of margin expansion. PAT was flat (+0.7% YoY) as higher other income was offset by a 49.6% jump in finance cost and lower other income.
Key positives
- OPM expanded 100bps YoY to 11%, marking the 4th consecutive quarter of margin improvement
- Revenue sequentially rebounded 15.3% from Q4FY26 (₹22,745.73 lakh to ₹26,214.09 lakh)
- RoCE at 19.86% and ROE at 14.14% remain healthy for the sector
Key concerns
- Revenue growth decelerated sharply to +4.9% YoY from +28.9% in Q1FY26, suggesting demand softening or high-base effect
- Finance cost jumped 49.6% YoY, compressing bottom-line absorption
- Other income dropped 77.6% YoY (₹92.54 lakh vs ₹413.64 lakh), removing a prior profit support
- PAT flat (+0.7% YoY) and EPS declined 6.3% YoY due to equity dilution
Research and educational content only. Not investment advice.