Nahar Indl. Ent. Q1 FY27 Results (NSE: NAHARINDUS)
Signal: Margin expansion
The read
The operating margin appears to have inflected sharply to 17.4% from the recent Q1FY26 level of 4% as raw-material intensity fell 610bps, but the trajectory is not yet demand-led because revenue declined 18.5% YoY and finance costs rose 241%; the ₹2497.50 lakh PAT is also heavily supported by other income equal to 87.9% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹316.53 Cr | -18.5% | -6.5% |
| EBIT | ₹43.05 Cr | 139.2% | |
| Net profit | ₹24.98 Cr | 510.8% | |
| EPS | ₹5.78 | 508.4% | |
| EBIT margin | 17.4% |
P&L walk
Revenue declined 18.5% YoY to ₹31653.20 lakh, but lower raw-material intensity and sharply higher EBITDA of ₹5494 lakh lifted the operating margin to 17.4%; PAT of ₹2497.50 lakh was additionally supported by ₹2617.77 lakh of other income.
Segments
Textile remained the largest segment at ₹26864.68 lakh of revenue and ₹3181.81 lakh of result, while sugar revenue declined 35.1% YoY to ₹4504.84 lakh; consolidated PAT exceeded standalone PAT by only ₹30.39 lakh.
Key positives
- Gross margin expanded approximately 610bps YoY to 58.8% as raw-material cost declined to 41.2% of revenue from 47.3%.
- EBITDA increased 87.4% YoY to ₹5494 lakh and EBITDA margin reached 17.4% despite revenue declining 18.5%.
- Textile remained profitable at ₹3181.81 lakh of segment result, while sugar also remained profitable at ₹810.96 lakh.
- EPS of ₹5.78 rose 508.4% YoY and broadly tracked PAT growth, with the PAT-to-EPS cross-check clean.
Key concerns
- Revenue declined 18.5% YoY to ₹31653.20 lakh, with sugar revenue down 35.1% and textile revenue down 7.7%.
- Finance costs increased 241.0% YoY to ₹4299.92 lakh, materially offsetting the operating improvement.
- The margin improvement is not yet confirmed as structural because the filing does not disclose whether the 610bps gross-margin expansion came from input deflation, pricing or mix.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.