P & G Health Ltd Q1 FY27 Results (NSE: PGHL)
Signal: Steady quarter
The read
Revenue growth of 26% YoY is solid, but operating profit (before exceptional) actually fell ~13% to ₹97.3 Cr from ₹111.8 Cr in Q1FY26, driven by higher raw material and employee costs. The net profit beat is entirely from a ₹31.8 Cr property sale gain. Excluding this, PAT grew merely ~9.5%. The company's core margin trajectory is under pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹363.71 Cr | 26% | -2% |
| EBIT | ₹97.46 Cr | N/A | |
| Net profit | ₹96.15 Cr | 45% | |
| EPS | ₹57.92 | 45% | |
| EBIT margin | 28.5% |
P&L walk
Operating profit before exceptional declined YoY despite revenue growth, as gross margin compressed due to inventory changes and employee costs rose. Net profit surged on a one-time property sale.
Key positives
- Revenue up 26% YoY to ₹363.7 Cr, driven by volume growth.
- Net profit up 45% YoY to ₹96.2 Cr (including exceptional).
- Other expenses as % of sales improved from 34.1% to 29.6%.
Key concerns
- Operating profit (before exceptional) declined 13% YoY to ₹97.3 Cr, indicating margin compression in core business.
- Gross margin contracted ~570bps due to inventory drawdown and higher raw material costs.
- Exceptional gain of ₹31.8 Cr from property sale masks underlying modest PAT growth of ~9.5%.
Earnings quality: includes an exceptional item
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