Nureca Q1 FY27 Results (NSE: NURECA)
Signal: Margin expansion
The read
Consolidated PAT ₹3.07 Cr (+277.7% YoY) on revenue ₹40.34 Cr (+18.0% YoY, +13.9% QoQ) — a clean operating turnaround with gross margin expanding 1197bps YoY (input cost tailwind) and operating leverage from employee/other costs growing far below revenue; EPS ₹3.21 vs ₹0.81 benefits from buyback-induced share count reduction.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4.03 Cr | 18.0% | 13.9% |
| EBIT | ₹0.47 Cr | 523.4% | |
| Net profit | ₹0.31 Cr | 277.7% | |
| EPS | ₹3.21 | 296.3% | |
| EBIT margin | 11.8% |
P&L walk
Revenue grew 18.0% YoY; gross margin surged 1197bps YoY to 38.8% due to favourable input cost (purchase of stock-in-trade + cost of material consumed as % of revenue dropped), driving EBITDA margin up 730bps to 11.8%; net profit more than tripled to ₹3.07 Cr.
Key positives
- Revenue growth accelerated to +18.0% YoY from +3.6% in Q4FY26, signalling demand recovery.
- Gross margin expanded 1197bps YoY to 38.8%, driven by raw material cost dropping to 61.2% of revenue from 73.1% — input cost tailwind.
- EBITDA margin surged 730bps YoY to 11.8%, with employee cost and other expenses growing at +13.3% and +4.9% YoY respectively — well below revenue growth, proving operating leverage.
- PAT more than tripled to ₹3.07 Cr; EPS rose 296% to ₹3.21.
- Buyback reduced equity base, enhancing EPS; debt-to-equity near zero (D/E 0.01 from fundamentals).
Key concerns
- Revenue is still 11.9% below the peak of ₹45.78 Cr in Q2FY26 — recovery is partial.
- Consolidated gross margin expansion of 1197bps is partly a comparison effect against a weak base (Q1FY26 GM 26.9%) — sustainability needs confirmation.
- Other income of ₹1.82 Cr contributed significantly to PAT (60% of net profit); core operating profit remains thin in absolute terms.
- Auditor's review notes a subsidiary (Nureca Technologies) merger pending NCLT approval — accounting impact deferred.
Research and educational content only. Not investment advice.