Mangalam Cement Q1 FY27 Results (NSE: MANGLMCEM)
Signal: Margin pressure
The read
The trajectory weakened operationally: revenue was broadly flat at ₹45521.73 lakh, up 0.8% YoY, but EBITDA fell 25.4% to ₹6398.28 lakh and EBITDA margin contracted 494bps to 14.05%; the main inflection is gross-margin compression to 80.29% despite raw-material intensity falling to 12.12%, with inventory movement and the precise cause not disclosed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹455.22 Cr | +0.8% | -7.2% |
| EBIT | ₹41.91 Cr | -36.2% | |
| Net profit | ₹18.07 Cr | -44.0% | |
| EPS | ₹6.57 | -44.0% | |
| EBIT margin | 14.05% |
P&L walk
Revenue was ₹45521.73 lakh, up 0.8% YoY but down 7.2% QoQ; gross margin compressed 865bps YoY to 80.29% despite raw-material intensity falling to 12.12%, while EBITDA declined 25.4% and PAT declined 44.0%.
Segments
The company reports one segment, cement, so no segment-level source of momentum or drag is disclosed; standalone-only reporting means there is no consolidated-versus-standalone divergence to assess.
Key positives
- Revenue increased 0.8% YoY to ₹45521.73 lakh despite a 7.2% QoQ decline.
- Cost of materials consumed fell 21.4% YoY to ₹5518.84 lakh, reducing raw-material intensity to 12.12% of revenue from 15.53%.
- Employee benefits expense declined 3.3% YoY to ₹3617.92 lakh, while freight and forwarding declined 3.5% to ₹10206.85 lakh.
- EPS tracked PAT at a 44.0% YoY decline, with no evidence from the reported figures of equity dilution or minority-interest leakage.
Key concerns
- Gross margin compressed 865bps YoY to 80.29% even though raw-material intensity declined 341bps, indicating that the adverse change-in-inventory expense of ₹3456.57 lakh more than offset the lower materials cost.
- EBITDA declined 25.4% YoY to ₹6398.28 lakh and EBITDA margin fell 494bps to 14.05% while revenue grew 0.8%.
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