Munjal Auto Inds Q1 FY27 Results (NSE: MUNJALAU)
Signal: Margin expansion
The read
The operating trajectory improved sharply in Q1FY27: consolidated revenue grew +42.4% and EBITDA +56.3%, with margin expanding 83bps and employee costs growing only +14.7%; nevertheless, gross margin compressed 319bps because material intensity rose to 74.6%, and PAT of ₹2,850.37 lakh was materially supported by other income of ₹2,038.39 lakh, including a ₹1,622.92 lakh unrealized mutual-fund gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹699.01 Cr | 42.4% | +13.8% |
| EBIT | ₹45.6 Cr | 74.7% | |
| Net profit | ₹28.5 Cr | 47.6% | |
| EPS | ₹2.58 | 63.3% | |
| EBIT margin | 9.2% |
P&L walk
Consolidated revenue increased to ₹69,901.48 lakh, +42.4% YoY and +13.8% QoQ, with EBITDA up +56.3% to ₹6,441.36 lakh and margin expanding to 9.2%; however, gross margin contracted 319bps as raw-material cost rose to 74.6% of revenue, while PAT growth to ₹2,850.37 lakh was aided by ₹2,038.39 lakh of other income.
Segments
Composite Products and Moulds contributed ₹28,362.60 lakh of revenue and ₹2,284.04 lakh of segment result, nearly matching Auto Components' ₹2,276.32 lakh result; the subsidiary therefore supplied roughly half of consolidated segment profit and was the key contributor to the standalone-to-consolidated gap.
Key positives
- Consolidated EBITDA reached ₹6,441.36 lakh, +56.3% YoY versus revenue growth of +42.4%, with an 83bps EBITDA-margin expansion to 9.2%.
- Employee benefits expense rose only 14.7% YoY to ₹5,599.31 lakh, well below revenue growth, reducing employee-cost intensity to 8.0% from 10.0%.
- Composite Products and Moulds generated ₹2,284.04 lakh of segment result, +33.4% YoY, and exceeded the Auto Components segment result of ₹2,276.32 lakh.
- Consolidated EPS rose +63.3% to ₹2.58, with paid-up equity share capital unchanged at ₹2,000 lakh.
Key concerns
- Gross margin contracted 319bps YoY to 25.8% as raw-material cost including inventory movement rose to 74.2% of revenue from 71.7%; revenue grew +42.4% while material consumed grew approximately +44.9%, indicating incomplete cost pass-through.
- Standalone depreciation declined 5.8% YoY to ₹460.37 lakh even as standalone revenue grew 40.0%; the consolidated asset-base cross-check remains clean because group segment assets rose 15.3% and consolidated depreciation rose 24.5%.
- Finance cost increased 22.0% YoY to ₹1,039.41 lakh, below revenue growth but still a material drag on PBT conversion.
Earnings quality: includes non-operating other income
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