Satia Industries Q1 FY27 Results (NSE: SATIA)

14 Aug 2026 · Analysis by Alpha Inflection

Signal: Slipped to loss

The read

The quarter shows an input-cost tailwind but weaker operating conversion: gross margin expanded 375bps as raw-material intensity fell to 49.4%, yet EBITDA margin contracted 164bps to 17.1% and EBITDA fell 11.0% YoY; the reported loss is primarily a one-time ₹3,933.13 lakh deferred-tax charge, while the five-month machine shutdown creates a near-term production risk.

P&L walk

Revenue declined 2.5% YoY to ₹36,181.47 lakh and EBITDA declined 11.0% to ₹6,187 lakh, but gross margin expanded 375bps as raw-material intensity fell to 49.4%; a ₹4,624 lakh tax charge, including a ₹3,933.13 lakh deferred-tax charge, converted ₹2,912 lakh of pre-tax profit into a ₹1,712 lakh loss.

Segments

Paper remained the dominant driver at ₹36,136.50 lakh of revenue and ₹3,196.58 lakh of PBIT, while Agriculture contributed only ₹44.97 lakh of revenue and ₹83.29 lakh of PBIT; the main operational drag is the planned Paper Machine 3 shutdown.

Key positives

• Gross margin expanded 375bps YoY to 50.6% as raw-material cost fell to 49.4% of revenue from 45.7%.
• Finance costs declined 28.7% YoY to ₹367.87 lakh, reducing pressure below EBITDA.
• The Paper Machine 3 refurbishment is expected to enable higher machine speed, improved production capacity and enhanced operating efficiency.

Key concerns

• Revenue declined 2.5% YoY to ₹36,181.47 lakh and EBITDA declined 11.0% YoY to ₹6,187 lakh.
• EBITDA margin contracted 164bps YoY to 17.1% despite gross-margin expansion, with employee costs rising 23.8% YoY to ₹3,668.30 lakh.
• The planned approximately five-month Paper Machine 3 shutdown will cause temporary production loss.
• PAT was negative ₹1,712.00 lakh after a ₹4,624.00 lakh tax expense, including a ₹3,933.13 lakh non-cash deferred-tax charge.

Earnings quality: includes non-operating other income

View original filing

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