Manomay Tex Indi Q1 FY27 Results (NSE: MANOMAY)
Signal: Margin pressure
The read
The key inflection is a sharp gross-margin deterioration to 38.5%, down 604bps YoY as raw-material cost rose to 66.8% of revenue from 59.5%; revenue still grew 20.5%, but EBITDA fell 3.3% and EBIT fell 4.9%, leaving PAT growth of 11.2% dependent on lower finance cost and tax movement rather than operating improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹197.51 Cr | 20.5% | -3.6% |
| EBIT | ₹12.84 Cr | -4.9% | |
| Net profit | ₹4.95 Cr | 11.2% | |
| EPS | ₹2.74 | 11.4% | |
| EBIT margin | 6.5% |
P&L walk
Standalone revenue increased to ₹19,751.05 lakh, +20.5% YoY, but gross margin compressed to 38.5% from 44.5% as raw-material cost rose to 66.8% of revenue from 59.5%; EBITDA declined 3.3% to ₹1,987 lakh, EBIT declined 4.9% to ₹1,284 lakh and PAT grew 11.2% to ₹495.18 lakh, helped by lower finance cost and tax movement.
Key positives
- Revenue from operations reached ₹19,751.05 lakh, +20.5% YoY, despite a 3.6% QoQ decline.
- Employee benefits plus other expenses grew 10.7% YoY, 9.8 percentage points slower than revenue, helping contain the operating-cost burden.
- Finance cost declined 17.8% YoY to ₹620.47 lakh, supporting PAT growth despite a 4.9% EBIT decline.
- EPS rose 11.4% YoY to ₹2.74, slightly ahead of PAT growth of 11.2%.
Key concerns
- Gross margin fell 604bps YoY to 38.5% as raw-material cost increased to 66.8% of revenue from 59.5%; the filing does not disclose a recovery mechanism.
- EBITDA declined 3.3% to ₹1,987 lakh and EBITDA margin fell 250bps to 10.1% despite 20.5% revenue growth, indicating weak conversion of sales growth into operating profit.
- PAT growth of 11.2% to ₹495.18 lakh was materially better than EBIT performance because finance cost fell 17.8%; this benefit may not repeat.
Research and educational content only. Not investment advice.