Patel Retail Q1 FY27 Results (NSE: PATELRMART)
Signal: Margin pressure
The read
The key inflection is not revenue but monetisation: revenue grew 69.7% YoY to ₹30,953.51 lakh while gross margin contracted 512bps to 16.3% and EBITDA margin fell 230bps to 6.4%; lower finance cost helped PAT grow 37.6% to ₹951.60 lakh, but the 34.2% larger equity base limited EPS growth to 2.5%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹309.54 Cr | 69.7% | -7.4% |
| EBIT | ₹15.31 Cr | 16.8% | |
| Net profit | ₹9.52 Cr | 37.6% | |
| EPS | ₹2.85 | 2.5% | |
| EBIT margin | 6.4% |
P&L walk
Revenue increased to ₹30,953.51 lakh, +69.7% YoY but -7.4% QoQ; gross margin compressed to 16.3% from 21.4% YoY as cost of material consumed rose 72.1%, EBITDA grew only 23.9% and margin fell to 6.4%, while PAT rose 37.6% but EPS increased just 2.5% after the equity base expanded 34.2%.
Key positives
- Revenue reached ₹30,953.51 lakh, up 69.7% YoY, materially extending the company’s top-line growth trajectory.
- Finance cost declined 34.9% YoY to ₹249.55 lakh, providing support to PBT despite gross-margin compression.
- Employee and other expenses grew 31.3% YoY to ₹3,135.21 lakh, below revenue growth of 69.7% and indicating cost intensity was not the primary source of margin pressure.
Key concerns
- Gross margin compressed 512bps YoY to 16.3% as cost of material consumed plus stock-in-trade and inventory changes rose 80.7%, faster than revenue growth of 69.7%.
- EBITDA grew only 23.9% YoY to ₹1,968.00 lakh versus revenue growth of 69.7%, reducing EBITDA margin to 6.4% from approximately 8.7%.
- EPS rose just 2.5% YoY to ₹2.85 against PAT growth of 37.6%, reflecting dilution from the 34.2% increase in paid-up equity share capital.
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