Meghmani Organi. Q1 FY27 Results (NSE: MOL)
Signal: Margins at cyclical peak
The read
Meghmani Organics delivered a strong profit recovery in Q1FY27, with PAT ₹48.19 Cr vs ₹12.68 Cr a year ago, despite 11.5% revenue decline. Gross margin expanded 824 bps YoY on raw material cost moderation, and lower finance costs added to the beat. The Pigment and Others segments turned from losses to profits, underscoring operational improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹542.83 Cr | -11.5% | +14.4% |
| EBIT | ₹97.91 Cr | +46.4% | |
| Net profit | ₹48.19 Cr | +280.0% | |
| EPS | ₹1.9 | +280.0% | |
| EBIT margin | 18.04% |
P&L walk
Consolidated PAT surged 280% YoY driven by broad-based improvement across segments, with Pigment turning from loss to profit and Others more than breaking even.
Segments
Group profit improvement led by Pigment segment turnaround (from -₹11.15 Cr loss to +₹2.85 Cr profit) and Others segment (from -₹1.31 Cr loss to +₹7.02 Cr profit); Agrochemicals stable.
Key positives
- Gross margin expanded 824 bps YoY to 46.56%, driven by input cost relief (RM-to-sales down from 61.68% to 53.44%).
- Pigment segment turned profitable with PBIT of ₹2.85 Cr vs loss of ₹11.15 Cr in Q1FY26.
- Consolidated EBITDA margin rose to 18.04%, the highest in recent quarters.
- Net profit up 280% YoY to ₹48.19 Cr; EPS at ₹1.90 vs ₹0.50.
- Finance costs declined sharply by 55.7% YoY to ₹13.05 Cr.
Key concerns
- Revenue declined 11.5% YoY; Agrochemicals segment revenue down 14.5%.
- Other income fell 28.1% YoY, reducing cushion.
- Topline growth remains negative; volume recovery uncertain.
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