Primo Chemicals Q1 FY27 Results (NSE: PRIMO)
Signal: Revenue declined
The read
The trajectory improved operationally after the prior-quarter 13.13% OPM in Q4FY26: Q1FY27 EBITDA margin was 18.6% with EBITDA up 1.5% despite revenue down 1.2%, but the quality of the ₹4.68 crore consolidated PAT is weaker because ₹5.24 crore of other income represented 59.1% of PBT and consolidated EPS growth of 11.8% lagged PAT growth of 14.7%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹140.28 Cr | -1.2% | N/A |
| EBIT | ₹12.55 Cr | 0.0% | |
| Net profit | ₹4.68 Cr | 14.7% | |
| EPS | ₹0.19 | 11.8% | |
| EBIT margin | 18.6% |
P&L walk
Consolidated revenue declined 1.2% YoY to ₹140.28 crore, while EBITDA increased 1.5% to ₹26.04 crore and EBITDA margin reached 18.6%; EBIT was flat at ₹12.55 crore, with PAT growth of 14.7% to ₹4.68 crore partly supported by ₹5.24 crore of other income.
Segments
The company reports a single Chemicals business segment; the ₹1.04 crore gap between consolidated PAT of ₹4.68 crore and standalone PAT of ₹3.64 crore indicates that associate or consolidation items lifted group earnings.
Key positives
- EBITDA increased 1.5% YoY to ₹26.04 crore despite revenue declining 1.2% to ₹140.28 crore, indicating improved operating resilience.
- EBITDA margin reached 18.6% in Q1FY27, above the 13.13% OPM recorded in Q4FY26 in the prior results series.
- Consolidated PAT rose 14.7% YoY to ₹4.68 crore and standalone PAT rose 19.0% to ₹3.64 crore.
Key concerns
- Revenue declined 1.2% YoY to ₹140.28 crore, so the improved margin was not accompanied by top-line growth.
- Other income of ₹5.24 crore represented 59.1% of PBT, making the ₹4.68 crore consolidated PAT materially dependent on non-operating income.
- EPS growth of 11.8% trailed PAT growth of 14.7%, resulting in a 2.9 percentage-point divergence.
Earnings quality: includes non-operating other income
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