RHI Magnesita Q1 FY27 Results (NSE: RHIM)
Signal: Margin expansion
The read
Q1FY27 marks a clear operating inflection: consolidated EBITDA margin recovered to 14.5% from 11% in Q1FY26 and EBITDA grew +42.2% versus revenue growth of +5.6%, while PAT rose +83.2% to ₹6460.78 lakh; however, the group remains less profitable than the parent, with consolidated PAT ₹1357.96 lakh below standalone PAT, and the filing does not disclose whether the margin recovery came from mix, pricing or input-cost benefits.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,013.97 Cr | 5.6% | 8.8% |
| EBIT | ₹97.25 Cr | 72.9% | |
| Net profit | ₹64.61 Cr | 83.2% | |
| EPS | ₹3.13 | 83.0% | |
| EBIT margin | 14.5% |
P&L walk
Consolidated revenue increased to ₹101396.74 lakh, +5.6% YoY, while gross margin expanded approximately 439bps and EBITDA rose +42.2% to ₹14698.00 lakh; PAT increased +83.2% to ₹6460.78 lakh with no current-quarter exceptional item.
Segments
The filing reports no reportable segments; the material divergence is between standalone PAT of ₹7818.74 lakh and consolidated PAT of ₹6460.78 lakh, indicating a ₹1357.96 lakh subsidiary drag on group earnings despite consolidated revenue of ₹101396.74 lakh versus standalone revenue of ₹86345.25 lakh.
Key positives
- Consolidated EBITDA increased +42.2% YoY to ₹14698.00 lakh against revenue growth of +5.6%, lifting EBITDA margin to 14.5% from 11% in the prior-year results series.
- Gross margin expanded approximately 439bps YoY to 41.85%, while raw-material cost declined to 41.11% of revenue from 41.74%; the filing does not disclose whether this reflects pricing, mix or input-cost relief.
- Consolidated PAT rose +83.2% YoY to ₹6460.78 lakh and EPS increased +83.0% to ₹3.13, with EPS tracking PAT.
- The company completed formation of a 51%-owned JV for refractory recycling in Odisha after the quarter, creating a new adjacent recycling business opportunity without current-quarter financial impact.
Key concerns
- Consolidated PAT of ₹6460.78 lakh was ₹1357.96 lakh below standalone PAT of ₹7818.74 lakh despite subsidiary revenue contributions, showing that group operations currently dilute parent profitability.
- Finance costs increased +18.3% YoY to ₹984.56 lakh, materially faster than consolidated revenue growth of +5.6%.
- The filing does not disclose volumes, realisations, capacity utilisation or order-book data, limiting confirmation of whether the 5.6% revenue growth is volume-led or price/mix-led.
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