Rajputana Stain. Q1 FY27 Results (NSE: RSL)
Signal: Steady quarter
The read
The operating inflection is positive: Q1FY27 revenue grew +30.5% YoY and EBITDA +43.2% YoY to ₹3,102.04 lakh, supported by sharply lower finance costs of ₹172.42 lakh; however, gross margin compressed 369bps YoY to 18.2%, so the durability of earnings depends on product mix and pricing rather than the IPO-funded expansion, which had utilised ₹0 lakh of its ₹1,857.17 lakh capex allocation by quarter-end.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹306.54 Cr | +30.5% | +20.2% |
| EBIT | ₹28.96 Cr | +49.3% | |
| Net profit | ₹20.2 Cr | +80.5% | |
| EPS | ₹2.42 | +36.7% | |
| EBIT margin | 10.1% |
P&L walk
Revenue increased to ₹30,654.22 lakh, +30.5% YoY and +20.2% QoQ, while EBITDA rose +43.2% YoY to ₹3,102.04 lakh and PAT rose +80.5% to ₹2,019.93 lakh; the main quality concern is gross-margin compression of 369bps YoY despite lower raw-material intensity.
Key positives
- Revenue reached ₹30,654.22 lakh, +30.5% YoY and +20.2% QoQ, indicating a strong near-term acceleration despite no disclosed volume split.
- EBITDA rose +43.2% YoY to ₹3,102.04 lakh versus revenue growth of +30.5%, with EBITDA margin expanding 79bps YoY to 10.1%.
- Finance costs declined 61.8% YoY to ₹172.42 lakh after ₹9,601.30 lakh of IPO proceeds was used for borrowing repayment/prepayment.
- Raw-material cost fell to 58.7% of revenue from 69.5% YoY, providing partial cost relief even though gross margin still compressed.
Key concerns
- Gross margin compressed 369bps YoY to 18.2% despite revenue growth of 30.5%; the filing does not disclose whether the pressure came from pricing, mix, or input costs.
- PAT growth of 80.5% materially exceeded EPS growth of 36.7%, reflecting dilution from the fresh IPO issue.
- Expansion capex allocation of ₹1,857.17 lakh had utilised ₹0 lakh by 30 June 2026, leaving the earnings contribution from the planned Panchmahal expansion unproven.
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