Radhika Jeweltec Q1 FY27 Results (NSE: RADHIKAJWE)
Signal: Margin pressure
The read
The key inflection is revenue acceleration to ₹15,254.16 lakh, +53.87% YoY versus the 3-year sales CAGR of 8.74%, but the quality of growth weakened as gross margin compressed 557bps to 23.73% and EBITDA margin fell 490bps to 20.71%; raw material cost increased 80.10% YoY versus revenue growth of 53.87%, leaving PAT growth at 25.53%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹152.54 Cr | +53.87% | -21.10% |
| EBIT | ₹31.15 Cr | +24.90% | |
| Net profit | ₹22.85 Cr | +25.53% | |
| EPS | ₹1.94 | +25.97% | |
| EBIT margin | 20.71% |
P&L walk
Standalone revenue increased to ₹15,254.16 lakh, +53.87% YoY but -21.10% QoQ; gross margin fell 557bps YoY to 23.73% as raw material cost rose to 67.49% of revenue from 57.68%, while EBITDA margin declined 490bps to 20.71% and PAT rose 25.53% to ₹2,285.35 lakh.
Key positives
- Revenue from operations increased to ₹15,254.16 lakh, +53.87% YoY, materially above the company's 3-year sales CAGR of 8.74%.
- Finance costs declined 6.68% YoY to ₹49.65 lakh and depreciation remained broadly flat at ₹43.93 lakh, supporting operating profit conversion.
- PAT increased 25.53% YoY to ₹2,285.35 lakh and basic EPS rose 25.97% to ₹1.94, with the PAT-to-EPS relationship remaining aligned.
Key concerns
- Gross margin compressed 557bps YoY to 23.73% as raw material cost rose to 67.49% of revenue from 57.68%.
- Raw material cost increased approximately 80.10% YoY versus revenue growth of 53.87%, indicating that the company absorbed part of the cost increase; the filing does not disclose a pricing or mix offset.
- EBITDA grew 24.45% YoY to ₹3,158.82 lakh, 29.42 percentage points below revenue growth, and EBITDA margin declined 490bps to 20.71%.
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