Sandur Manganese Q1 FY27 Results (NSE: SANDUMA)
Signal: Growth reaccelerated
The read
The key inflection is profit resilience despite a 9.0% QoQ revenue decline: consolidated PAT reached ₹22709 lakh, up 36.3% YoY, helped by finance costs falling 51.3% to ₹2611 lakh; however, gross margin contracted 270bps YoY to 58.9% and mining momentum weakened 25.3% QoQ.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,374.78 Cr | +21.1% | -9.0% |
| EBIT | ₹307.18 Cr | N/A | |
| Net profit | ₹227.09 Cr | +36.3% | |
| EPS | ₹4.67 | +36.1% | |
| EBIT margin | 26.1% |
P&L walk
Consolidated revenue rose 21.1% YoY to ₹137478 lakh but fell 9.0% QoQ, while EBITDA was ₹35823 lakh and PAT attributable to owners rose 36.3% YoY to ₹22709 lakh; lower finance costs supported the profit conversion.
Segments
Steel remained the largest consolidated driver at ₹85944 lakh revenue and ₹8484 lakh result, while mining revenue fell 25.3% QoQ to ₹41985 lakh and ferroalloys remained loss-making at negative ₹620 lakh despite revenue growth of 166.9% YoY.
Key positives
- Consolidated PAT was ₹22709 lakh, up 36.3% YoY versus revenue growth of 21.1%, supported by finance costs declining 51.3% to ₹2611 lakh.
- Raw-material cost fell to 41.4% of revenue from 45.1% YoY, indicating input-cost relief even though gross margin compressed 270bps.
- Steel delivered ₹85944 lakh revenue and ₹8484 lakh result, with segment result up 16.0% YoY and 35.7% QoQ.
- EPS of ₹4.67 rose 36.1% YoY and tracked PAT growth, with the pat-to-eps check clean.
Key concerns
- Mining revenue declined 25.3% QoQ to ₹41985 lakh, creating sequential volatility in the group’s core mining business.
- Gross margin compressed 270bps YoY to 58.9% despite raw-material cost improving to 41.4% of revenue; the filing does not disclose the driver.
- Ferroalloys generated a negative segment result of ₹620 lakh despite revenue of ₹11601 lakh, indicating weak downstream profitability.
- The parent faces a revised compensatory-afforestation demand of ₹13905 lakh and 714.9 hectares of land for extending the forest lease beyond December 2026.
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