Responsive Ind Q1 FY27 Results (NSE: RESPONIND)
Signal: Margin expansion
The read
The key inflection is not the sequential recovery in consolidated revenue from ₹19,287.16 lakh versus ₹43,033.99 lakh in Q4FY26, but the continuing earnings deterioration: EBITDA margin at 13.1% is 890bps below Q1FY26 and PAT at ₹273.94 lakh is down 94.5% YoY, while other income of ₹203.70 lakh equals 56% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹192.87 Cr | -43.1% | -55.2% |
| EBIT | ₹7.64 Cr | -86.6% | |
| Net profit | ₹2.74 Cr | -94.5% | |
| EPS | ₹0.1 | -94.7% | |
| EBIT margin | 13.1% |
P&L walk
Consolidated revenue declined 43.1% YoY to ₹19,287.16 lakh, gross margin compressed by roughly 310bps as direct costs rose to 68.2% of revenue, EBITDA fell 66.1% to ₹2,535.00 lakh and PAT fell 94.5% to ₹273.94 lakh, with other income contributing 56% of PBT.
Segments
The filing identifies a single primary business segment, Articles made out of PVC/Polymers; the ₹19,287.16 lakh consolidated revenue versus ₹14,827.89 lakh standalone revenue indicates subsidiaries contributed materially to the reported group scale, but no segment-level momentum is disclosed.
Key positives
- Consolidated finance costs fell 24.8% YoY to ₹400.10 lakh and 48.0% QoQ, reducing below-EBITDA pressure.
- Consolidated EBITDA margin recovered to 13.1% from approximately 5.5% in Q4FY26, although it remained 890bps below Q1FY26.
- EPS at ₹0.10 declined 94.7% YoY versus PAT decline of 94.5%, so the earnings-per-share deterioration did not materially lag profit decline.
Key concerns
- Consolidated revenue fell 43.1% YoY to ₹19,287.16 lakh, reversing the 5.9% YoY growth reported in Q1FY26 and following 10.3% and 15.5% declines in Q2FY26 and Q3FY26.
- Gross margin compressed approximately 310bps YoY to 31.8%; direct costs reached 68.2% of revenue versus 65.1% a year earlier, with the driver not disclosed.
- EBITDA declined 66.1% YoY to ₹2,535.00 lakh and EBITDA margin contracted 890bps YoY to 13.1%, indicating weak operating conversion rather than merely below-the-line pressure.
- Standalone revenue was nearly flat YoY at ₹14,827.89 lakh but standalone PAT fell 55.2% to ₹253.67 lakh, showing continued margin deterioration in the parent business.
- The board only constituted a Buy-Back Committee to evaluate the proposed buyback; no approval, size or timeline was disclosed.
Earnings quality: includes non-operating other income
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