Prem. Explosives Q1 FY27 Results (NSE: PREMEXPLN)
Signal: Revenue declined
The read
The quarter shows a sharp operating deterioration rather than a durable recovery: revenue increased 15.0% QoQ to ₹10256.35 lakh but fell 27.9% YoY, raw-material intensity expanded to 76.3% from 49.9%, EBITDA margin contracted 718bps YoY to 7.5%, and PAT was supported by other income equal to 42.8% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹102.56 Cr | -27.9% | +15.0% |
| EBIT | ₹4.79 Cr | -79.9% | |
| Net profit | ₹3.07 Cr | -80.0% | |
| EPS | ₹0.57 | -80.0% | |
| EBIT margin | 7.5% |
P&L walk
Revenue declined 27.9% YoY to ₹10256.35 lakh, raw-material intensity rose to 76.3% from 49.9%, EBITDA fell 71.4% to ₹7.65 Cr and margin dropped to 7.5%, while PAT fell 80.0% to ₹307.60 lakh and was partly supported by other income equal to 42.8% of PBT.
Key positives
- Revenue improved 15.0% QoQ to ₹10256.35 lakh after the prior quarter's ₹8920.87 lakh.
- EBITDA margin recovered to 7.5% from -0.43% QoQ, although it remained 718bps below the 14.68% reported a year earlier.
- Finance costs declined 39.0% YoY to ₹62.50 lakh, limiting below-the-line pressure.
Key concerns
- Raw-material cost rose to 76.3% of revenue from 49.9% YoY, compressing the implied gross margin by 2636bps.
- Revenue declined 27.9% YoY to ₹10256.35 lakh and EBITDA fell 71.4% YoY to ₹7.65 Cr.
- Employee benefits increased to 18.4% of revenue from 12.4% YoY, despite revenue being lower.
Earnings quality: includes non-operating other income
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