RSWM Ltd Q1 FY27 Results (NSE: RSWM)
Signal: Revenue declined
The read
The trajectory remains an operating-margin recovery rather than a top-line recovery: revenue declined 0.7% YoY, but gross margin expanded 253bps to 39.8% and EBITDA rose 16.1% in the release, extending the margin improvement seen through FY25-FY26; PAT quality is tempered by other income of ₹8.86 crore, equal to 32.5% of consolidated PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,161.24 Cr | -0.7% | +1.7% |
| EBIT | ₹59.88 Cr | N/A | |
| Net profit | ₹19.65 Cr | 2.4x | |
| EPS | ₹4.17 | N/A | |
| EBIT margin | 8.5% |
P&L walk
Consolidated revenue was ₹1161.24 crore, down 0.7% YoY but up 1.7% QoQ, while EBITDA was ₹99 crore at an 8.5% margin; the filing attributes the stronger operating result to product mix, manufacturing efficiency and cost discipline.
Segments
No segment results table is disclosed; consolidated PAT of ₹19.65 crore exceeded standalone PAT of ₹16.74 crore by ₹2.91 crore, indicating a positive contribution from consolidation.
Key positives
- Gross profit was ₹465.6 crore, up 5.8% YoY, while gross margin expanded 253bps to 39.8%, indicating a favourable product mix and improved manufacturing efficiency despite revenue declining 0.7% YoY.
- Standalone EBITDA was ₹94.07 crore, up 16.1% YoY and 10.1% QoQ in the release, with margin reaching 8.1% versus 6.9% a year earlier.
- Domestic demand and improved volumes partly offset softer export demand, while the company continues to focus on value-added and sustainable products.
Key concerns
- Revenue declined 0.7% YoY because of softer export demand, geopolitical uncertainties and raw-material price volatility; the filing does not establish that the decline has bottomed.
- Consolidated other income of ₹8.86 crore represented 32.5% of PBT, so the ₹19.65 crore PAT includes a material non-operating contribution.
- Standalone PAT of ₹16.74 crore was below consolidated PAT of ₹19.65 crore, making subsidiary or other consolidated contributions relevant to earnings quality.
Earnings quality: includes non-operating other income
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