Nitin Spinners Q1 FY27 Results (NSE: NITINSPIN)
Signal: Margin expansion
The read
The key inflection is operating profitability: revenue grew 10.3% YoY to ₹87503.04 lakh, but derived EBITDA grew 39.9% and margin expanded 382bps to 18.07%, led primarily by gross-margin expansion of 380bps as raw-material intensity fell 240bps to 62.56%; the durability of the uplift remains unproven because the filing does not disclose the input-cost or mix driver.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹875.03 Cr | +10.3% | +1.8% |
| Net profit | ₹75.27 Cr | +83.6% | |
| EPS | ₹13.39 | +83.8% | |
| EBIT margin | 18.07% |
P&L walk
Standalone revenue increased to ₹87503.04 lakh, +10.3% YoY and +1.8% QoQ; gross margin expanded 380bps as raw-material cost fell to 62.56% of revenue from 64.96%; EBITDA margin rose to 18.07%, aided by depreciation growing only 2.1% YoY and finance cost declining 7.4%; PAT increased 83.6% to ₹7526.68 lakh.
Key positives
- Gross margin expanded 380bps YoY to 40.52%, with raw-material cost declining to 62.56% of revenue from 64.96%.
- Derived EBITDA grew 39.9% YoY to ₹15808.18 lakh versus revenue growth of 10.3%, while EBITDA margin expanded 382bps to 18.07%.
- Depreciation increased only 2.1% YoY to ₹3763.35 lakh and finance cost declined 7.4% to ₹1947.20 lakh, supporting the 83.6% PAT growth.
Key concerns
- The filing does not disclose textile volumes, realisations, capacity utilisation or the reason for the 380bps gross-margin expansion, limiting confidence in persistence.
- Changes in inventories were a ₹2687.95 lakh reduction in the quarter versus a ₹1328.40 lakh reduction YoY; the inventory release contributed to reported operating performance and requires monitoring in subsequent quarters.
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