Rupa & Co Q1 FY27 Results (NSE: RUPA)
Signal: Growth reaccelerated
The read
The operating trajectory recovered from Q1FY26's 7% OPM and -12.4% revenue growth to 10.4% EBITDA margin and +10.1% revenue growth in Q1FY27, but margin remains 160bps below Q4FY26's 12% peak and PAT quality is weaker because other income was 44.1% of consolidated PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹202.43 Cr | 10.1% | -54.1% |
| EBIT | ₹17.37 Cr | 25.1% | |
| Net profit | ₹8.26 Cr | 49.6% | |
| EPS | ₹1.04 | 50.7% | |
| EBIT margin | 10.4% |
P&L walk
Consolidated revenue increased 10.1% YoY to ₹20,242.80 lakh and EBITDA rose 20.3% to ₹21.14 Cr, expanding EBITDA margin to 10.4%, while PAT growth of 49.6% to ₹8.26 Cr was amplified by other income equal to 44.1% of PBT.
Segments
The group reports one hosiery and related-services segment; the material divergence is basis-related, with standalone PAT of ₹959.96 lakh exceeding consolidated PAT of ₹826.34 lakh because standalone other income was ₹834.99 lakh versus ₹538.83 lakh consolidated.
Key positives
- Consolidated revenue increased 10.1% YoY to ₹20,242.80 lakh after declining 12.4% YoY in Q1FY26.
- EBITDA grew 20.3% YoY versus 10.1% revenue growth, lifting EBITDA margin to 10.4% from 9.5% YoY.
- EPS increased 50.7% YoY to ₹1.00 and broadly tracked the 49.6% PAT growth.
- Employee and job-worker expenses increased 6.9% YoY, slower than the 10.1% consolidated revenue increase.
Key concerns
- Gross-margin proxy compressed by 770bps YoY as cost of materials increased to 77.3% of revenue from 69.6%; the filing does not disclose the driver.
- Consolidated other income of ₹538.83 lakh represented 44.1% of PBT, making the 49.6% PAT growth less representative of recurring operations.
- Consolidated EBITDA margin of 10.4% was 160bps below Q4FY26's 12% margin, so the recovery has not yet surpassed the recent peak.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.