Ruchira Papers Q1 FY27 Results (NSE: RUCHIRA)
Signal: Steady quarter
The read
The key trajectory inflection is a sharp margin reversal: revenue grew 3.8% YoY to ₹17,492.02 lakh, but raw-material intensity rose to 80.0% from approximately 65.8%, compressing gross margin by approximately 1,420bps and driving PAT down 63.8% to ₹614.41 lakh; finance costs also rose 108.6% YoY to ₹318.53 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹174.92 Cr | +3.8% | -3.9% |
| Net profit | ₹6.14 Cr | -63.8% | |
| EPS | ₹2.06 | -63.8% |
P&L walk
Standalone revenue increased 3.8% YoY to ₹17,492.02 lakh, but gross margin compressed to 20.0% from approximately 34.2% as raw-material intensity rose to 80.0% of revenue from approximately 65.8%; PAT consequently declined 63.8% to ₹614.41 lakh.
Key positives
- Revenue increased 3.8% YoY to ₹17,492.02 lakh despite declining 3.9% QoQ.
- Basic EPS declined 63.8% YoY in line with PAT decline, with no evidence of dilution-related divergence.
- Finance costs declined 3.1% QoQ to ₹318.53 lakh, although they remained 108.6% above the year-ago level.
Key concerns
- Gross margin compressed approximately 1,420bps YoY to 20.0% as raw-material consumed rose to 80.0% of revenue from approximately 65.8%.
- Revenue grew 3.8% YoY while total expenses grew 14.7% YoY, indicating substantial cost absorption.
- PAT fell 63.8% YoY to ₹614.41 lakh and 35.5% QoQ to ₹614.41 lakh.
- Finance costs increased 108.6% YoY to ₹318.53 lakh, creating additional pressure below operating profit.
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