Safari Inds. Q1 FY27 Results (NSE: SAFARI)
Signal: Steady quarter
The read
Q1FY27 consolidated revenue growth of 11.5% YoY was healthy but margin compression dominated the narrative: raw material cost rose 330bps as % of revenue, driving EBITDA margin down ~210bps to ~13.6% and PAT down 5.4% YoY — the third consecutive quarter of YoY margin contraction after three quarters of expansion, suggesting structural cost pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹588.58 Cr | 11.5% | 24.4% |
| EBIT | ₹61.05 Cr | 24.4% | |
| Net profit | ₹47.75 Cr | -5.4% | |
| EPS | ₹9.75 | -5.6% |
P&L walk
Revenue grew 11.5% YoY but gross margin compressed sharply as raw material cost surged to 55.4% of revenue (+330bps YoY), more than offsetting operating leverage on employee costs; EBITDA margin contracted ~210bps YoY to ~13.6%; PAT declined 5.4% YoY, dragged by margin pressure and higher tax rate.
Segments
The group operates a single luggage segment; no segment breakdown provided.
Key positives
- Revenue grew 11.5% YoY to ₹588.58 Cr, supported by volume momentum in luggage.
- Consolidated EBITDA grew despite margin pressure, indicating some operating leverage on fixed costs.
- Other income rose 24.1% YoY to ₹7.20 Cr, partly cushioning operating profit decline.
Key concerns
- Gross margin compressed 330bps YoY as raw material cost surged to 55.4% of revenue.
- Employee cost grew 20.5% YoY, outpacing revenue growth and adding cost pressure.
- Standalone PAT fell 27.3% YoY, suggesting earnings are increasingly reliant on subsidiaries.
Research and educational content only. Not investment advice.