Premier Polyfilm Q1 FY27 Results (NSE: PREMIERPOL)
Signal: Margin expansion
The read
Q1FY27 shows revenue acceleration (+34% YoY) and PAT growth (+51%), but the headline profit advance masks a 361bps gross margin compression from higher raw material costs. The margin resilience came from strong operating leverage (employee costs and D&A growing far below revenue). Finance costs spiked 194% YoY, though coverage remains comfortable. The credit rating upgrade to [ICRA]A- adds financial credibility. Key watch: whether raw material cost pressure persists and if pricing can be adjusted in coming quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹100.06 Cr | 34.4% | 8.5% |
| EBIT | ₹14.03 Cr | 45.4% | |
| Net profit | ₹9.08 Cr | 51.3% | |
| EPS | ₹0.87 | 52.6% | |
| EBIT margin | 14.02% |
P&L walk
Revenue grew 34.4% YoY, driven by volume/mix (no price breakdown). Gross margin compressed 361bps as raw material % of revenue rose from 54.43% to 58.04%, an input-cost headwind. However, EBITDA margin expanded 106bps to 14.02% as employee costs grew only 13.3% (vs revenue +34.4%), demonstrating operating leverage. Finance costs surged 194% YoY (₹24→₹71 lakh) but remain low relative to EBITDA (coverage 61.6x). PAT grew 51.3% in line with operating profit, with no exceptional items.
Key positives
- Revenue grew 34.4% YoY to ₹10,006 lakh, the highest quarterly level in recent history.
- EBITDA margin expanded 106bps YoY to 14.02% despite gross margin headwind, reflecting operating leverage.
- PAT jumped 51.3% YoY to ₹908 lakh, EPS ₹0.87 (+52.6%).
- Credit rating upgraded to [ICRA]A-(Stable)/[ICRA]A2+ and removed from 'Issuer Not Cooperating' category.
Key concerns
- Gross margin compressed 361bps YoY as raw material cost % of revenue rose from 54.43% to 58.04% — a significant input-cost headwind.
- Finance costs surged 194% YoY to ₹70.6 lakh, though from a low base; driven by higher borrowings for working capital.
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