Credo Brands Q1 FY27 Results (NSE: MUFTI)
Signal: Margin pressure
The read
The trajectory has inflected negatively: after OPM expanded in Q3FY25 and Q4FY25, Q1FY27 revenue grew only 4.4% while EBITDA fell 12.2% and margin compressed 430bps to 22.9%; the ₹22.85 million PAT is also low-quality because other income of ₹20.95 million was 66.9% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹125.27 Cr | 4.4% | -22.8% |
| EBIT | ₹9.44 Cr | -34.6% | |
| Net profit | ₹2.29 Cr | -63.7% | |
| EPS | ₹0.35 | -63.9% | |
| EBIT margin | 22.9% |
P&L walk
Revenue grew 4.4% YoY, but EBITDA declined 12.2% and EBITDA margin compressed to 22.9%; PAT fell 63.7% as operating profit weakened and non-operating other income represented 66.9% of PBT.
Key positives
- Revenue increased 4.4% YoY to ₹1,252.69 million despite a 22.8% sequential decline from ₹1,623.04 million.
- Gross margin was broadly protected at 61.6%, up 8bps YoY, while finance costs grew only 1.5% YoY versus revenue growth of 4.4%.
Key concerns
- EBITDA declined 12.2% YoY to ₹286.7 million and EBITDA margin contracted 430bps to 22.9%, reversing the margin expansion seen in Q3FY25 and Q4FY25.
- Employee benefits plus other expenses rose 18.2% YoY to ₹506.04 million, substantially ahead of the 4.4% revenue growth and indicating negative operating cost absorption.
- PAT fell 63.7% YoY to ₹22.85 million, with operating weakness partly obscured by ₹20.95 million of other income.
Earnings quality: includes non-operating other income
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