Pudumjee Paper Q1 FY27 Results (NSE: PDMJEPAPER)
Signal: Margin pressure
The read
The quarter shows modest top-line recovery but weaker earnings quality: revenue increased 3.29% YoY to ₹20,292 lakh, gross margin improved 71bps on lower raw-material intensity, yet EBITDA margin compressed 137bps to 25.23% and PAT declined 6.96% to ₹3,372 lakh because operating profit and other income both fell while finance cost rose 143.75%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹202.92 Cr | +3.29% | +1.18% |
| EBIT | ₹46.25 Cr | -5.48% | |
| Net profit | ₹33.72 Cr | -6.96% | |
| EPS | ₹3.55 | -7.07% | |
| EBIT margin | 25.23% |
P&L walk
Revenue rose 3.29% YoY to ₹20,292 lakh, while EBITDA fell 2.03% to ₹5,119 lakh and EBITDA margin declined 137bps to 25.23%; EBIT fell 5.48% to ₹4,625 lakh and PAT fell 6.96% to ₹3,372 lakh, partly reflecting lower other income of ₹1,561 lakh versus ₹1,858 lakh.
Segments
Paper remained the earnings engine, with revenue up 2.37% YoY to ₹19,506 lakh and segment result up 6.56% to ₹3,754 lakh, while Hygiene Products revenue rose 17.08% but its result fell 62.50% to ₹27 lakh.
Key positives
- Operating revenue rose 3.29% YoY to ₹20,292 lakh, reversing the recent low-growth trajectory indicated by the filing's year-ago comparison.
- Raw-material intensity improved 71bps YoY to 50.61% of revenue, lifting gross margin to 49.39%.
- Paper segment result increased 6.56% YoY to ₹3,754 lakh despite only 2.37% revenue growth, indicating better segment profitability.
Key concerns
- EBITDA declined 2.03% YoY to ₹5,119 lakh and EBITDA margin contracted 137bps to 25.23% despite revenue growth.
- Finance cost increased 143.75% YoY to ₹156 lakh, creating a growing drag between EBIT of ₹4,625 lakh and PBT of ₹4,469 lakh.
- Hygiene Products segment result fell 62.50% YoY to ₹27 lakh despite revenue growth of 17.08%, weakening the diversification benefit.
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