Nephrocare Health Services Q1 FY27 Results (NSE: NEPHROPLUS)
Signal: Steady quarter
The read
The quarter marks an operating-margin recovery: consolidated revenue grew 23.7% YoY to 2,817.54 million and estimated EBITDA margin reached 25.3%, up from 19% in Q4FY26, with the gross-margin tailwind and lower employee-cost intensity partly offset by a 35.66 million joint-venture loss, higher tax and continuing EPS dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹281.75 Cr | +23.7% | +6.1% |
| Net profit | ₹31.97 Cr | +34.9% | |
| EPS | ₹3.19 | +13.1% |
P&L walk
Consolidated revenue increased 23.7% YoY to 2,817.54 million, while gross margin expanded 175bps to 77.84%; estimated EBITDA margin recovered to 25.3% from 19% in Q4FY26, although the 35.66 million joint-venture loss and higher tax limited PAT growth to 34.9%.
Segments
The Philippines and Uzbekistan drove the consolidated acceleration, growing 35.4% and 48.6% YoY respectively versus 11.6% for India; consolidated revenue of 2,817.54 million was 65.3% above standalone revenue of 1,703.78 million, showing that overseas subsidiaries are material to group growth.
Key positives
- Consolidated gross margin expanded 175bps YoY to 77.84% as raw-material intensity declined 175bps to 22.16% of revenue; the filing does not disclose whether this reflects pricing, mix or input-cost changes.
- Estimated consolidated EBITDA margin expanded to 25.32% from 22.52% YoY and recovered from 19% in Q4FY26, supported by employee benefits growing 20.2% versus revenue growth of 23.7%.
- Philippines revenue grew 35.4% YoY to 906.29 million and Uzbekistan revenue grew 48.6% to 321.34 million, both materially ahead of consolidated revenue growth of 23.7%.
- Finance costs declined 63.8% YoY to 22.06 million on a consolidated basis and 86.1% to 4.85 million on a standalone basis.
Key concerns
- Basic EPS grew 13.1% YoY to ₹3.19, materially below PAT growth of 34.9%, reflecting dilution from the IPO-era share base and ESOP exercises.
- The 35.66 million share of loss from the Saudi joint venture reduced consolidated profit before tax from 445.96 million before the JV loss to 410.30 million; the Saudi entity reported nil turnover for FY26.
- Consolidated tax expense rose 88.0% YoY to 90.56 million, causing PAT growth of 34.9% to trail pre-tax profit growth of 43.9%.
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