Shree Rama News. Q1 FY27 Results (NSE: RAMANEWS)
Signal: Loss widened
The read
The operating inflection is negative: revenue rose 6.0% YoY to ₹972.16 lakh, but raw-material cost increased 40.2% YoY versus revenue growth of 6.0%, compressing gross margin by 1,652bps; lower employee and other expenses could not offset finance costs of ₹919.54 lakh, leaving a ₹1,049.91 lakh total loss and a continuing-operations current-liability gap of ₹12,625.97 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹9.72 Cr | +6.0% | +23.5% |
| Net profit | ₹-10.5 Cr | -2.2% | |
| EPS | ₹-0.72 | -2.9% | |
| EBIT margin | 9.47% |
P&L walk
Standalone revenue rose to ₹972.16 lakh, +6.0% YoY and +23.5% QoQ, but raw-material and packing costs increased to 64.27% of revenue from 48.57% YoY, compressing gross margin by 1,652bps; derived EBITDA fell to ₹92.08 lakh, -53.5% YoY, while finance cost remained ₹919.54 lakh and drove a continuing-operations loss of ₹938.18 lakh.
Key positives
- Revenue from operations increased to ₹972.16 lakh, +6.0% YoY and +23.5% QoQ, despite the company's structurally weak recent revenue trajectory.
- Employee benefit plus other expenses declined 20.0% YoY to ₹384.18 lakh, providing some cost containment.
- Discontinued-operations loss narrowed to ₹111.73 lakh from ₹216.94 lakh YoY and ₹2,798.53 lakh QoQ as the company continues disposing of Paper Division assets.
Key concerns
- Gross margin fell 1,652bps YoY to 31.84% as raw-material and packing-material costs rose to 64.27% of revenue from 48.57%; the filing does not indicate pricing pass-through or a mitigating mix shift.
- Finance costs of ₹919.54 lakh were nearly ten times derived EBITDA of ₹92.08 lakh, leaving continuing operations with a ₹938.18 lakh loss before tax.
- The company reported a ₹1,049.91 lakh total loss and current liabilities exceeding current assets by ₹12,625.97 lakh for continuing operations.
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