Nilkamal Ltd Q1 FY27 Results (NSE: NILKAMAL)
Signal: Margin expansion
The read
A tale of two segments: B2B volume halved by raw material cost shock (approx. 50% spike) but pricing power held value and margins; Retail & Ecommerce swung from a ₹9.5 Cr loss to a ₹1.7 Cr EBIT profit, providing the bottom-line lift. The PAT surge of 59.6% YoY is also flattered by a high base that included a ₹15.41 Cr exceptional charge in Q1FY26. Despite the sharp volume decline in B2B, the company demonstrated pricing discipline and cost management — EBITDA margin expanded 280bps YoY to 9.7%. Net debt collapsed from ₹331 Cr to ₹116 Cr YoY, significantly lowering finance costs and risk.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹819.73 Cr | -7.2% | -15.1% |
| EBIT | ₹40.62 Cr | 44.1% | |
| Net profit | ₹24.32 Cr | 59.6% | |
| EPS | ₹16.29 | 59.5% | |
| EBIT margin | 9.7% |
P&L walk
Revenue declined 7.2% YoY on steep B2B volume fall (-37% volume, -10% value) in the face of ~50% surge in raw material costs. Higher B2B realisations and a 22% ecommerce growth (plus 6% store growth) in the Retail & Ecommerce segment partly offset the top-line drag. EBITDA margin expanded 280bps YoY to 9.7%, driven by pricing actions and mix shift (lower-margin B2B share shrinking). PAT surged 59.6% YoY to ₹24.32 Cr as exceptional items (₹Nil vs ₹15.41 Cr labour-code charge in Q1FY26) also helped; core operations turned positive in Retail segment (EBIT ₹1.68 Cr vs -₹9.50 Cr YoY).
Segments
Retail & Ecommerce turned from a ₹9.50 Cr EBIT loss in Q1FY26 to a ₹1.68 Cr profit in Q1FY27, driving the consolidated earnings recovery; B2B segment EBIT of ₹41.27 Cr was nearly flat YoY (₹41.74 Cr in Q1FY26) despite a 10% value decline, supported by pricing actions.
Key positives
- Retail & Ecommerce segment turned profitable with EBIT of ₹1.68 Cr vs -₹9.50 Cr YoY, growing 13% revenue.
- Consolidated EBITDA margin expanded 280bps YoY to 9.7% despite 7.2% revenue decline.
- Net debt reduced to ₹116 Cr from ₹331 Cr YoY, a 65% reduction improving balance sheet strength.
- Finance costs decreased 11.2% YoY to ₹9.87 Cr on lower borrowings.
- Standalone PAT grew 143% YoY to ₹23.36 Cr, helped by exceptional-item base effect.
Key concerns
- B2B volume collapsed 37% YoY, with value only -10% — the business is passing through significant raw material inflation (approx. +50%) and demand destruction.
- Consolidated revenue fell 7.2% YoY; the long-term sales CAGR of 14% over 3 years is now reversing.
- The current quarter PAT of ₹24.32 Cr is 79% lower than Q4FY26, highlighting seasonality risk (Q4 typically strongest).
- Exceptional item in Q1FY26 distorts YoY comparison; adjusting for that, PAT growth is still positive but less dramatic.
Research and educational content only. Not investment advice.