Nahar Spinning Q1 FY27 Results (NSE: NAHARSPING)
Signal: Margin expansion
The read
The key inflection is operating margin expansion: EBITDA rose 121.50% YoY versus 17.92% revenue growth and EBITDA margin expanded 660bps to 14.1%, with employee cost up only 0.87%, but the 268bps gross-margin compression shows that the recovery was not driven by input-cost tailwinds.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹966.1 Cr | +17.92% | +4.72% |
| EBIT | ₹112.01 Cr | +81.73% | |
| Net profit | ₹69.88 Cr | +337.66% | |
| EPS | ₹19.38 | +337.47% | |
| EBIT margin | 14.1% |
P&L walk
Revenue increased to ₹96610.09 lakh, +17.92% YoY and +4.72% QoQ, while EBITDA rose +121.50% YoY to ₹13651.00 lakh and margin expanded to 14.1%; PAT growth to ₹6987.72 lakh was supported by operating improvement, although gross margin compressed as raw-material consumption rose to 56.85% of revenue from 66.93%?
Key positives
- Revenue reached ₹96610.09 lakh, +17.92% YoY and +4.72% QoQ, extending the top-line recovery.
- EBITDA rose 121.50% YoY to ₹13651.00 lakh versus 17.92% revenue growth, a 103.58pp growth gap; employee cost grew only 0.87% and depreciation 5.78%, supporting operating leverage.
- EBITDA margin expanded 660bps YoY to 14.1%, while PAT rose 337.66% to ₹6987.72 lakh.
- EPS rose 337.47% to ₹19.38, closely tracking PAT growth and indicating no material dilution signal.
Key concerns
- Gross margin compressed approximately 268bps YoY to 37.24%; the filing does not disclose the driver, so the sustainability of the margin recovery remains uncertain.
- Raw-material consumption was ₹54926.79 lakh, or 56.85% of revenue versus 66.93% a year ago, while total material, purchase and inventory-change costs remained 62.76% of revenue; the cost and inventory mix requires monitoring.
- Finance cost increased 45.31% QoQ to ₹1863.31 lakh, despite rising only 8.40% YoY.
Research and educational content only. Not investment advice.