Safari Inds. Q1 FY27 Results (NSE: SAFARI)
Signal: Margin pressure
The read
The topline trajectory remains positive but is decelerating, with consolidated revenue growth slowing to 11.5% YoY from 15.6% in Q3FY26 and 12.3% in Q4FY26; the more important concern is that consolidated EBITDA margin fell 210bps YoY to 14.0% and standalone PAT fell 27.3% to ₹28.87 Cr, leaving the group increasingly dependent on subsidiary earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹588.58 Cr | +11.5% | +24.3% |
| EBIT | ₹63.58 Cr | N/A | |
| Net profit | ₹47.75 Cr | -5.4% | |
| EPS | ₹9.75 | -5.6% | |
| EBIT margin | 14.0% |
P&L walk
Revenue rose to ₹588.58 Cr, +11.5% YoY and +24.3% QoQ, but gross margin fell to 44.6% from 45.8% and EBITDA margin declined to 14.0% from approximately 16.1% as direct material and inventory-related costs increased faster than sales; PAT fell 5.4% to ₹47.75 Cr.
Segments
The company reports a single luggage operating segment, but subsidiaries materially lift group earnings: consolidated PAT was ₹47.75 Cr versus standalone PAT of ₹28.87 Cr, while consolidated EBITDA margin was 14.0% versus standalone 8.8%.
Key positives
- Consolidated revenue reached ₹588.58 Cr, increasing 11.5% YoY and 24.3% QoQ, extending the positive topline trend.
- Consolidated PAT improved 27.5% QoQ to ₹47.75 Cr, reversing the ₹37.47 Cr level reported in Q4FY26.
- Standalone gross margin expanded 320bps YoY to 66.4%, indicating that the parent company's direct-cost profile improved even though standalone EBITDA margin declined to 8.8%.
Key concerns
- Consolidated EBITDA margin contracted 210bps YoY to 14.0%, reversing the 400bps expansion seen in Q2FY26 and leaving margins below the 15% level reported in Q1FY26.
- Standalone PAT declined 27.3% YoY to ₹28.87 Cr despite revenue growth of 11.3%, highlighting weak conversion of parent-company sales into earnings.
- Consolidated direct costs rose to ₹326.30 Cr from ₹286.24 Cr YoY while revenue grew 11.5%, contributing to the 120bps gross-margin compression.
- Consolidated employee and other expenses increased 15.1% YoY to ₹186.86 Cr, faster than revenue growth.
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