Nitta Gelatin Q1 FY27 Results (NSE: NITTAGELA)
Signal: Margin expansion
The read
Q1FY27 marks the third consecutive quarter of margin expansion (Q3FY26: +500bps, Q4FY26: +1000bps, Q1FY27: +570bps YoY), confirming a structural turnaround in profitability despite flat revenue. The OPM of 27.1% is the highest for Q1 in at least 3 years. Revenue remains sluggish (+1.5% YoY) suggesting margin improvement is cost-led rather than volume-driven; a volume recovery would amplify earnings further.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹140.87 Cr | 1.5% | -76.1% |
| EBIT | ₹34.11 Cr | 28.2% | |
| Net profit | ₹25.18 Cr | 31.4% | |
| EPS | ₹27.73 | 31.3% | |
| EBIT margin | 27.1% |
P&L walk
Revenue flat YoY (+1.5%) but EBITDA margin expanded 570bps to 27.1% driven by cost control and mix; PAT grew 31.4% YoY, with other income low at ₹3.67 Cr (10.8% of PBT), earnings quality clean.
Key positives
- EBITDA margin expanded 570bps YoY to 27.1%, the highest Q1 level in recent history.
- PAT grew 31.4% YoY to ₹25.18 Cr despite flat revenue, demonstrating improved operating efficiency.
- Third consecutive quarter of YoY margin expansion (Q3FY26: +500bps, Q4FY26: +1000bps, Q1FY27: +570bps).
- Earnings quality is clean with other income only 10.8% of PBT; net profit driven by established operations.
Key concerns
- Revenue growth stalled at +1.5% YoY, the slowest in 6 quarters; volume recovery not yet visible.
- QoQ revenue dropped 76.1% from Q4FY26’s ₹162 Cr, partly seasonal but highlights lumpiness.
- Standalone PAT growth (30.0%) slightly lags consolidated (31.4%), indicating minor drag from subsidiary.
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