Prakash Industri Q1 FY26 Results (NSE: PRAKASH)
Signal: Margin expansion
The read
The operating trajectory improved despite flat revenue: gross margin expanded 708bps YoY to 42.6% and EBITDA increased 7.0% to ₹15,400 lakh, but this was not enough to offset finance costs up 72.8% and the tax-regime change that lifted current tax to ₹2,147 lakh, driving PAT down 22.0% to ₹7,127 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,032 Cr | -0.5% | +12.2% |
| EBIT | ₹111.15 Cr | +8.7% | |
| Net profit | ₹71.27 Cr | -22.0% | |
| EPS | ₹3.98 | -22.0% | |
| EBIT margin | 14.9% |
P&L walk
Revenue was ₹1,03,200 lakh, -0.5% YoY but +12.2% QoQ; gross margin expanded to 42.6% from 35.5% YoY as material costs declined to 58.0% of revenue, lifting EBITDA margin to 14.9%, while PAT fell 22.0% to ₹7,127 lakh because tax increased under the new regime.
Key positives
- Gross margin expanded 708bps YoY to 42.6% as raw-material cost fell to 58.0% of revenue from 64.8%, although management did not disclose the precise driver.
- EBITDA increased 7.0% YoY to ₹15,400 lakh and EBITDA margin improved 100bps to 14.9% despite revenue declining 0.5% YoY.
- Bhaskarpara coal mine extracted 3.3 lac MT during the quarter, supporting the FY target of 1.2 Mn tonnes.
Key concerns
- PAT declined 22.0% YoY to ₹7,127 lakh because the new tax regime eliminated the section 80-IA exemption; current tax rose to ₹2,147 lakh from nil in the comparable period.
- Finance costs increased 72.8% YoY to ₹1,843 lakh and 34.0% QoQ, reducing the conversion of EBITDA growth into profit.
- Revenue declined 0.5% YoY to ₹1,03,200 lakh, providing no evidence of volume or realization growth in the quarter.
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