Sahyadri Industr Q1 FY27 Results (NSE: SAHYADRI)
Signal: Steady quarter
The read
The key inflection is a 550bps YoY gross-margin expansion to 50.2%, alongside revenue growth of 20.4% and PAT growth of 146.2%; employee costs fell 31.4% YoY and finance costs fell 49.5%, but the combination of ₹554.85 crore segment assets and 8.3% lower depreciation requires monitoring as the 1,20,000 MT Odisha and 72,000 MT Maharashtra projects progress.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹258.42 Cr | +20.4% | +33.2% |
| Net profit | ₹26.52 Cr | +146.2% | |
| EPS | ₹24.22 | +146.1% |
P&L walk
Standalone revenue increased to ₹258.42 crore, +20.4% YoY and +33.2% QoQ, while gross margin expanded to 50.2% from 44.7% YoY as raw-material intensity fell to 49.8% from 55.3%; PAT reached ₹26.52 crore, +146.2% YoY, helped by lower employee and finance costs.
Segments
Building Material drove the result with ₹256.20 crore revenue and ₹33.22 crore segment profit, while Power Generation contributed ₹4.84 crore revenue and ₹1.73 crore profit; both segments remained profitable and grew YoY.
Key positives
- Revenue from operations reached ₹258.42 crore, up 20.4% YoY and 33.2% QoQ, with the Building Material segment contributing ₹256.20 crore.
- Gross margin expanded 550bps YoY to 50.2% as raw-material cost fell to 49.8% of revenue from 55.3%. The filing does not identify the precise driver, so persistence needs confirmation.
- PAT increased 146.2% YoY to ₹26.52 crore, while employee benefits declined 31.4% YoY to ₹12.05 crore and finance costs declined 49.5% to ₹0.54 crore.
- The company has initiated capacity expansion comprising a 1,20,000 MT Odisha asbestos corrugated-sheet unit and a 72,000 MT Maharashtra non-asbestos cement-board plant.
- The company declared an interim dividend of INR 2.50 per share for FY2026-27.
Key concerns
- The filing does not disclose volume or realisation, limiting assessment of whether the 20.4% revenue growth was volume-led or price/mix-led.
- Depreciation declined 8.3% YoY to ₹5.67 crore even as segment assets rose 8.3% YoY to ₹554.85 crore; commissioning and depreciation timing should be monitored.
- Gross-margin expansion is not attributed in the filing, leaving uncertainty over whether the 550bps improvement is structural or input-cost-led.
Research and educational content only. Not investment advice.