Mazda Q1 FY27 Results (NSE: MAZDA)
Signal: Steady quarter
The read
The key inflection is a sharp gross-margin tailwind, with raw-material intensity falling 710bps YoY to 36.6%, but the quality of the quarter is mixed because EBITDA growth of +45.7% lagged revenue growth of +61.9% and other income contributed 37.3% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹80.34 Cr | 61.9% | +25.2% |
| EBIT | ₹9.8 Cr | 51.2% | |
| Net profit | ₹7.33 Cr | 49.3% | |
| EPS | ₹3.66 | 49.4% | |
| EBIT margin | 13.6% |
P&L walk
Revenue accelerated to ₹8,033.90 lakh, +61.9% YoY and +25.2% QoQ, with raw-material intensity falling to 36.6% from 43.7%; however, EBITDA grew +45.7%, slower than revenue, and PAT growth was partly supported by ₹350.49 lakh of other income.
Segments
Engineering remained the main earnings engine with revenue of ₹6,738.88 lakh, +59.1% YoY, and segment result of ₹1,160.54 lakh, +42.4%; Food revenue grew faster at +78.4% but its result declined 17.3% QoQ to ₹179.43 lakh.
Key positives
- Revenue reached ₹8,033.90 lakh, +61.9% YoY and +25.2% QoQ, with Engineering Division revenue up +59.1% YoY to ₹6,738.88 lakh.
- Gross margin expanded to 63.4%, +710bps YoY, as raw-material cost fell to 36.6% of revenue from 43.7%.
- Employee benefit expense grew only +14.7% YoY to ₹1,131.44 lakh versus revenue growth of +61.9%, lowering employee-cost intensity to 14.1%.
- EPS rose +49.4% YoY to ₹3.66 and tracked PAT growth of +49.3%.
Key concerns
- EBITDA grew +45.7% YoY to ₹1,093.00 lakh, materially slower than revenue growth of +61.9%, limiting conversion of topline growth into operating profit.
- Food Division segment result declined 17.3% QoQ to ₹179.43 lakh despite revenue growth of +1.5% QoQ, indicating near-term margin pressure in that division.
- Gross-margin expansion is not attributed by management; the 710bps YoY improvement may require confirmation in subsequent quarters.
- Other income of ₹350.49 lakh represented 37.3% of PBT, making reported PAT less purely operational.
Earnings quality: includes non-operating other income
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