Mcleod Russel Q1 FY27 Results (NSE: MCLEODRUSS)
Signal: Loss narrowed
The read
The operating inflection is real but incomplete: consolidated revenue grew 21.0% YoY and EBITDA grew 239.3% to ₹3,172 lakh with margin up 910bps to 12.1%, yet PAT remained a ₹1,338 lakh loss and the auditor highlighted material uncertainty around ₹41,421 lakh of unprovided ICD exposure, debt restructuring conditions and going concern.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹261.11 Cr | 21.0% | N/A |
| EBIT | ₹16 Cr | N/A | |
| Net profit | ₹-13.38 Cr | 69.2% | |
| EPS | ₹-1.28 | 69.2% | |
| EBIT margin | 12.1% |
P&L walk
Consolidated revenue of ₹26,111 lakh grew 21.0% YoY and EBITDA of ₹3,172 lakh grew 239.3%, lifting EBITDA margin to 12.1%, but EBIT was only ₹1,600 lakh after depreciation and PAT remained a ₹1,338 lakh loss.
Key positives
- Consolidated revenue reached ₹26,111 lakh, +21.0% YoY, reversing the Q1FY26 revenue base of ₹21,600 lakh.
- Consolidated EBITDA rose 239.3% YoY to ₹3,172 lakh and EBITDA margin expanded 910bps to 12.1%.
- Employee costs grew 15.4% YoY versus revenue growth of 21.0% on a consolidated basis, indicating fixed-cost absorption contributed to the margin recovery.
- Standalone finance costs declined 40.4% YoY to ₹2,430 lakh, although the absolute burden remains high.
Key concerns
- Consolidated PAT remained negative at ₹1,338 lakh despite EBITDA of ₹3,172 lakh, showing that operating recovery has not yet translated into bottom-line solvency.
- Standalone employee benefits expense remained ₹20,373 lakh, equal to approximately 99.6% of standalone revenue, leaving the business highly sensitive to seasonal revenue swings.
- Debt resolution is conditional on execution of the NARCL MRA, promoter contribution, tea-estate monetisation, provident-fund settlement and settlement with a lender bank.
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