Raghav Product. Q1 FY27 Results (NSE: RPEL)
Signal: Margin expansion
The read
Consolidated Q1FY27 results show a sharp revenue acceleration (+48.7% YoY) combined with 410bps YoY EBITDA margin expansion to 28.5%, driven by both input cost tailwind (raw material % fell 330bps) and operating leverage on fixed costs. PAT growth of 67.6% outpaces revenue, and EPS tracks PAT cleanly. The standalone entity grew more modestly (revenue +12.2%) and relies on subsidiary dividend for earnings — the momentum sits in the consolidated/ subsidiary level. No red flags in the filing.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹86.91 Cr | 48.7% | 23.2% |
| Net profit | ₹19.57 Cr | 67.6% | |
| EPS | ₹4.26 | ||
| EBIT margin | 28.5% |
P&L walk
Revenue surged 48.7% YoY to ₹8,691.31 Lakhs, aided by strong volume growth and a low base from Q1FY26. Gross margin expanded sharply: raw material cost fell to 28.5% of revenue from 31.8% YoY, a 330bps tailwind. EBITDA margin rose 410bps to 28.5% as employee costs (3.2% vs 3.9%) and depreciation (2.1% vs 2.8%) also deleveraged. PAT grew 67.6% to ₹1,957.43 Lakhs, slightly aided by higher other income (₹98.31 Lakhs vs ₹81.04 Lakhs). EPS rose to ₹4.26 from ₹2.54.
Segments
Company reports single operating segment 'Ramming Mass'; no segment table.
Key positives
- Revenue grew 48.7% YoY, accelerating from the trailing 3yr CAGR of 28.8% — a strong quarterly beat vs historical trend.
- EBITDA margin expanded 410bps YoY to 28.5%, driven by both input cost tailwind (raw material % down 330bps) and cost deleverage.
- PAT grew 67.6% YoY, nearly 19pp faster than revenue, reflecting operating leverage and low finance costs.
- EPS grew in lockstep with PAT (₹4.26 vs ₹2.54), no dilution.
- Zero exceptional items and clean auditor review — no audit qualifications.
Key concerns
- Raw material cost % improvement is from 31.8% to 28.5% — if input prices reverse, margin tailwind may reverse; driver not explicitly disclosed.
- Standalone revenue growth (+12.2% YoY) is modest; group performance is heavily reliant on the wholly owned subsidiary (Raghav Productivity Solutions), which is not separately disclosed.
- Other income in standalone is inflated by ₹456.25 Lakhs dividend from subsidiary — that cash is eliminated on consolidation and not a recurring operational contributor.
- P/E of 110.95x vs industry 39.02x leaves little room for execution misstep.
Research and educational content only. Not investment advice.