Nath Bio-Genes Q1 FY26 Results (NSE: NATHBIOGEN)
Signal: Growth decelerated
The read
Q1FY26 seasonal revenue surge (+15.8% YoY consolidated) but OPM contracted 90bps YoY to 10.4% as gross margin compression and higher finance cost (+33.4% YoY) ate into operating gains; PAT grew 14.1% YoY in line with operating profit. The standalone performance mirrors consolidated, with the Uzbekistan JV contributing marginally. The sequential turnaround from a loss-making Q4FY26 is seasonal, not structural improvement. Key watch item: rising finance cost trend and ability to maintain margins in non-peak quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹328.4 Cr | 15.8% | 536.6% |
| EBIT | ₹36.05 Cr | 19.9% | |
| Net profit | ₹32.26 Cr | 14.1% | |
| EPS | ₹16.98 | 14.1% | |
| EBIT margin | 10.4% |
P&L walk
Revenue growth driven by Q1 seasonal peak; OPM contracted 90bps YoY to 10.4% as gross margin compression (production & seed cost +6.2% vs revenue +15.8% outpaced) and higher finance cost (+33.4% YoY) weighed, partially offset by lower employee cost ratio; PAT growth aligned with operating profit plus exceptional income.
Key positives
- Consolidated revenue grew 15.8% YoY to ₹32,840.42 lakh, driven by seasonal seed sales.
- Consolidated PAT up 14.1% YoY to ₹3,226.18 lakh, with EPS at ₹16.98 (+14.1% YoY).
- Employee cost grew slower than revenue (12.8% vs 15.8%), providing marginal operating leverage.
Key concerns
- OPM contracted 90bps YoY to 10.4% due to gross margin pressure and higher selling & distribution expenses (+26.2% YoY).
- Finance cost surged 33.4% YoY to ₹426.31 lakh, indicating higher debt for working capital.
- Exceptional income (₹119.98 lakh) was 41.8% lower YoY, reducing bottom-line support.
- Prior year Q1 figures now include a short provision of ₹900 lakh (scheme-related), making YoY comparisons less clean.
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