Paushak Q1 FY27 Results (NSE: PAUSHAKLTD)
Signal: Margin pressure
The read
Strong revenue growth (+49.5% YoY) driven by volume/realisation, but gross margin contracted 1370bps due to raw material cost surge (31.3% of revenue vs 17.6% a year ago). Employee and other opex ratios improved significantly, but depreciation (+107%) and finance cost (+3300%) jumped, partly from capex and new debt. PAT grew 25.5% aided by higher other income; overall margin pressure and rising leverage are key watch items.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹83.55 Cr | 49.5% | 51.5% |
| EBIT | ₹17.23 Cr | 24.9% | |
| Net profit | ₹15.1 Cr | 25.5% | |
| EPS | ₹6.13 | 25.6% | |
| EBIT margin | 30.73% |
P&L walk
Standalone-only filing; no consolidated statement.
Key positives
- Revenue grew 49.5% YoY to ₹8,355 lakh, the highest quarterly revenue in recent quarters.
- Employee cost ratio improved to 11.56% from 17.61% YoY, showing operating leverage on manpower.
- EBITDA margin remained above 30% despite raw material headwind.
- Other income jumped 67.6% YoY to ₹315 lakh, boosting bottom line.
Key concerns
- Gross margin contracted 1370bps YoY to 68.7% as raw material cost % surged from 17.6% to 31.3%.
- Finance cost skyrocketed from ₹4 lakh to ₹136 lakh YoY, indicating significant debt addition.
- Depreciation doubled YoY to ₹842 lakh, reflecting heavy capex – margin impact going forward.
- Net profit margin declined from 21.5% to 18.1% YoY despite revenue growth.
Research and educational content only. Not investment advice.