P N Gadgil Jewe. Q1 FY27 Results (NSE: PNGJL)
Signal: Margin expansion
The read
Revenue grew 40.7% YoY to ₹24,130M, accelerating from prior year's tepid 2.8% growth, with PAT up 51.9% YoY. EBITDA margin expanded ~115bps YoY to 7.56%, aided by tight control of other expenses (+5.2% only). Operating leverage evident in other expense line; however, employee and finance costs grew faster than revenue. QoQ revenue declined 31.9% due to seasonality (Q1 vs Q4 wedding season). Overall, solid start to FY27 with improved profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,412.98 Cr | 40.7% | -31.9% |
| Net profit | ₹105.34 Cr | 51.9% | |
| EPS | ₹7.76 | 51.9% | |
| EBIT margin | 7.56% |
P&L walk
Revenue growth accelerated to 40.7% YoY, driven by volume (wedding & festive demand) and new store contribution; gross margin stable at ~13.25%; EBITDA margin expanded ~115bps YoY to 7.56%, powered by other expenses growing only 5.2% YoY — far below revenue growth. Employee and finance costs grew faster, partly offsetting. PAT grew 51.9% YoY, in line with operating profit.
Key positives
- Revenue growth of 40.7% YoY, accelerating from 2.8% in Q1FY26
- PAT growth of 51.9% YoY, faster than revenue
- EBITDA margin expanded ~115bps YoY to 7.56%
- Other expenses grew only 5.2% YoY, showing cost discipline
- No exceptional items; effective tax rate stable
Key concerns
- QoQ revenue declined 31.9% due to seasonality (typical Q1 dip)
- Employee costs grew 49.7% YoY, faster than revenue, indicating wage/store expansion pressure
- Finance costs surged 80.0% YoY, reflecting higher debt for inventory
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