Pricol Ltd Q1 FY27 Results (NSE: PRICOLLTD)
Signal: Growth decelerated
The read
Revenue growth decelerated to +23.5% YoY (from 42-63% in prior four quarters), but margins held and profit grew 34% YoY. The standout is employee cost discipline driving modest operating leverage. No red flags; the demerger of DICVS business is a strategic event to watch.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,083.58 Cr | 23.5% | 0.5% |
| EBIT | ₹124.41 Cr | 25.7% | |
| Net profit | ₹67.02 Cr | 34.3% | |
| EPS | ₹5.5 | 34.5% | |
| EBIT margin | 11.5% |
P&L walk
Revenue ₹1,084 Cr (+23.5% YoY) grew slower than prior quarters; cost of materials % stable at 70%; employee cost ratio improved 59bps; EBITDA margin held at 11.5% (+20bps YoY) but dipped sequentially; PAT ₹67 Cr (+34.3% YoY) was aided by lower tax rate (23.4% vs 24.8% YoY).
Key positives
- Revenue grew 23.5% YoY to ₹1,084 Cr, sustaining double-digit growth albeit at a moderating pace.
- PAT grew 34.3% YoY to ₹67 Cr, outpacing revenue on margin improvement and lower tax rate.
- Employee cost ratio fell 59bps to 11.7%, reflecting operating leverage.
- EBITDA margin expanded 20bps YoY to 11.5%.
- No exceptional items; clean audit report.
Key concerns
- Sequential revenue growth was only +0.5% QoQ, and PAT declined 8.5% from Q4FY26, indicating quarter-end seasonality or perhaps a demand plateau.
- Gross margin compressed 43bps YoY to 28.5%, though not alarming.
- EBITDA margin contracted 67bps QoQ from 12.2% in Q4FY26.
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