R M Drip & Sprin Q1 FY27 Results (NSE: RMDRIP)
Signal: Margin pressure
The read
The key inflection is sequential margin recovery to 22.4% from 20.96% in Q4FY26 after two quarters of YoY contraction, but the trajectory remains mixed: Q1FY27 revenue grew 32.5% YoY while EBITDA rose only 2.5% and PAT 0.2%, substantially weaker than the 55.0% revenue and 37.5% PAT growth recorded in Q3FY26; the reported 80.3% EPS decline versus 0.2% PAT growth is an additional earnings-quality concern.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹40.39 Cr | 32.5% | -33.7% |
| EBIT | ₹8.17 Cr | 2.5% | |
| Net profit | ₹5.32 Cr | 0.2% | |
| EPS | ₹0.42 | -80.3% | |
| EBIT margin | 22.4% |
P&L walk
Consolidated revenue increased 32.5% YoY to ₹40.39 Cr, but EBITDA grew only 2.5% to ₹9.03 Cr and EBITDA margin fell to 22.4%; PAT was broadly flat at ₹5.32 Cr, indicating that operating earnings are not yet converting the higher revenue base into proportional profit.
Key positives
- Consolidated revenue reached ₹40.39 Cr, up 32.5% YoY, sustaining positive top-line growth despite a 33.7% sequential decline from Q4FY26.
- EBITDA margin recovered to 22.4% from 20.96% in Q4FY26, a 144bps sequential improvement after the prior quarter's 1013bps YoY contraction.
- Standalone PAT of ₹5.35 Cr was slightly above consolidated PAT of ₹5.32 Cr, indicating no material earnings drag from subsidiaries.
Key concerns
- EBITDA grew only 2.5% YoY to ₹9.03 Cr versus 32.5% revenue growth, showing weak conversion of sales growth into operating profit.
- PAT increased only 0.2% YoY to ₹5.32 Cr and fell 46.8% sequentially, indicating continued earnings deceleration despite revenue growth.
- The filing does not disclose volumes, realisations, product mix, capacity utilisation, order book or raw-material costs, limiting assessment of whether growth is volume-led or price-led and why margins weakened.
Research and educational content only. Not investment advice.