Ratnaveer Precis Q1 FY27 Results (NSE: RATNAVEER)
Signal: Margin expansion
The read
Q1FY27 revenue and EBITDA growth accelerated YoY, with EBITDA margin +111 bps to 11.43%, driven by operating leverage as revenue grew 18.9% versus slower fixed cost growth; PAT growth of 22% tracks operational improvement; EPS distorted by bonus/rights; key positives: margin expansion, strong revenue momentum, and CCL project progressing.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹314.64 Cr | 18.9% | 26.4% |
| EBIT | ₹21.88 Cr | 21.9% | |
| Net profit | ₹18.24 Cr | 22.0% | |
| EPS | ₹10.36 | N/A | |
| EBIT margin | 11.43% |
P&L walk
Revenue grew 18.9% YoY to ₹314.64 Cr, while EBITDA grew 31.7% YoY to ₹35.98 Cr, expanding margin by 111 bps YoY to 11.43%, reflecting operating leverage as fixed costs grew slower than revenue; PAT grew 22% YoY to ₹18.24 Cr, with PAT margin +15 bps to 5.80%.
Segments
Single-segment operation; total segment assets ₹1,321.13 Cr; no sub-segment breakdown, but Copper Clad Laminate project (60% complete, on track for Nov 2026) is a future growth driver.
Key positives
- Revenue grew 18.9% YoY to ₹314.64 Cr, the highest quarterly revenue in the series (vs Q4FY26 ₹249 Cr, Q1FY26 ₹264.6 Cr).
- EBITDA grew 31.7% YoY, outpacing revenue growth by 12.8pp, reflecting operating leverage.
- EBITDA margin expanded 111 bps YoY to 11.43% (vs 10.32% in Q1FY26).
- PAT grew 22% YoY to ₹18.24 Cr, with PAT margin +15 bps to 5.80%.
- Copper Clad Laminate project 60% complete, on track for November 2026 commercial production, targeting import substitution.
- Credit rating upgraded by Infomerics (long-term to IVR A- Stable, short-term to A2+).
Key concerns
- EPS growth (₹10.36 vs ₹2.97) is not comparable due to bonus/rights adjustment; investors need to adjust for share count changes.
- QoQ EBITDA margin declined 289 bps from 14.32% (Q4FY26) to 11.43%, though Q4 often sees seasonally stronger margins.
- No segment-level detail on cost or volume drivers; total segment assets ₹1,321.13 Cr but no balance-sheet ratios disclosed.
- Financing cost, depreciation, and working capital details not provided in this filing, limiting full earnings quality assessment.
Research and educational content only. Not investment advice.