NOCIL Q1 FY27 Results (NSE: NOCIL)
Signal: Margin expansion
The read
Q1FY27 marks a sharp reversal: revenue grew 19.9% YoY after 6 consecutive quarters of decline, EBITDA margin expanded 370bps YoY to 12.7%, and PAT surged 60.8% YoY to ₹27.76 Cr. This is the first quarter of margin expansion after a long run of contractions, driven by revenue recovery and operating leverage. The company appears to be turning the corner after a prolonged downturn.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹403.02 Cr | 19.9% | 22.0% |
| EBIT | ₹37.39 Cr | 59.0% | |
| Net profit | ₹27.76 Cr | 60.8% | |
| EPS | ₹1.66 | 61.2% | |
| EBIT margin | 12.7% |
P&L walk
Revenue ₹403.02 Cr (+19.9% YoY, +22.0% QoQ) – first YoY growth after six quarters of decline; EBITDA ₹51.12 Cr (+37.5% YoY) with margin at 12.7% (+370bps YoY) driven by revenue recovery and operating leverage; EBIT ₹37.39 Cr (+59.0% YoY); Other income ₹5.9 Cr; PBT ₹37.09 Cr; Tax ₹9.33 Cr; PAT ₹27.76 Cr (+60.8% YoY); EPS ₹1.66 (+61.2% YoY).
Key positives
- Revenue ₹403 Cr, +19.9% YoY – first YoY growth in 7 quarters, reversing a sustained decline.
- EBITDA margin 12.7%, expanded 370bps YoY – first margin expansion after 6 quarters of contraction.
- PAT ₹27.76 Cr, +60.8% YoY – bottom-line growth substantially outstripping revenue.
- EPS ₹1.66, +61.2% YoY – tracking PAT with no dilution.
Key concerns
- Trailing ROCE (3.93%) and ROE (2.6%) remain very low despite this quarter's improvement; need sustained recovery to normalize returns.
- High P/E of 62.3x (vs industry 30.1x) already prices in a multi-quarter recovery; any stumble could lead to de-rating.
Research and educational content only. Not investment advice.