Nalwa Sons Invst Q1 FY27 Results (NSE: NSIL)
Signal: Earnings grew
The read
The quarter marks a sharp operating-margin rebound to 98.3% from 88.3% YoY and 86.5% QoQ after the prior quarter's trading and associate losses, but the investment thesis remains dependent on recurring ₹2142.00 lakh dividend income and fair-value gains rather than revenue growth, which was still down 7.3% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹34.38 Cr | -7.3% | +25.6% |
| EBIT | ₹33.79 Cr | +3.2% | |
| Net profit | ₹26.69 Cr | +3.5% | |
| EPS | ₹51.96 | +3.5% | |
| EBIT margin | 98.3% |
P&L walk
Consolidated revenue fell 7.3% YoY to ₹3437.77 lakh because the prior-year quarter included ₹363.05 lakh of trading revenue, but EBITDA margin expanded to 98.3% from the investment-heavy mix; PAT still rose 3.5% to ₹2668.99 lakh, aided by ₹7.07 lakh of associate profit and lower operating costs.
Segments
Investment & Finance drove the quarter with ₹3437.77 lakh revenue and ₹3384.71 lakh PBT, while Trading of goods contributed nil versus ₹363.05 lakh revenue and ₹1.84 lakh PBT YoY; the consolidated result therefore reflects the investment portfolio rather than trading.
Key positives
- Consolidated EBITDA margin reached 98.3%, up 990bps YoY, as trading purchases were nil and other expenses fell 23.2% YoY to ₹40.61 lakh.
- Dividend income remained ₹2142.00 lakh, providing the largest and most stable disclosed earnings contributor.
- PAT rose 3.5% YoY to ₹2668.99 lakh despite a 7.3% revenue decline, with EPS tracking PAT at ₹51.96.
Key concerns
- Revenue declined 7.3% YoY to ₹3437.77 lakh because trading revenue fell to nil from ₹363.05 lakh; earnings remain concentrated in investment income.
- The ₹2142.00 lakh dividend contribution represented approximately 62.3% of consolidated revenue, creating dependence on portfolio distributions.
- Fair-value gains were ₹351.08 lakh, up 15.0% YoY, making reported earnings partly market-value dependent.
Research and educational content only. Not investment advice.