Plastiblends (I) Q1 FY27 Results (NSE: PLASTIBLEN)
Signal: Margin expansion
The read
Revenue grew 11% YoY and EBITDA margin expanded 297 bps to 10.98%, driven by inventory gains from rising raw material prices and better product mix; PAT up 68% YoY. However, the inventory gain is non-recurring and margins may normalize as raw material prices have started to decline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹221.61 Cr | 11.01% | 5.22% |
| Net profit | ₹14.95 Cr | 67.54% | |
| EPS | ₹5.75 | ||
| EBIT margin | 10.98% |
P&L walk
Revenue grew 11% YoY, but EBITDA jumped 52% YoY as inventory gains from rising raw material costs and better product mix pushed EBITDA margin up 297 bps; PAT tracked with 68% growth, but the inventory gain is flagged as non-recurring.
Key positives
- Revenue grew 11% YoY to ₹22,161 Lakhs, with strong export performance and better product mix.
- EBITDA margin surged 297 bps YoY to 10.98%, reflecting inventory gains and operating leverage.
- PAT up 67.5% YoY to ₹1,495 Lakhs; EPS rose to ₹5.75 from ₹3.43.
- Net debt-to-equity is negligible (D/E 0.05); low financial risk.
Key concerns
- EBITDA margin benefited from non-recurring inventory gains due to rising raw material prices; management expects normalization as prices decline.
- Overhead costs are trending up due to inflationary pressure on power, wages, logistics.
- Other income declined 6% YoY and 35% QoQ, reducing total income growth slightly.
- Finance cost rose 47% YoY, though absolute level remains modest.
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