Saurashtra Cem. Q1 FY27 Results (NSE: SAURASHCEM)
Signal: Margin pressure
The read
The trajectory has weakened after the Q4FY26 and Q1FY26 margin recovery: Q1FY27 revenue grew 7.8% YoY, but EBITDA margin contracted 230bps to 5.7% and PAT fell 45.8% as gross margin compressed 783bps and Paints remained loss-making; this is the third consecutive quarter of YoY EBITDA-margin contraction.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹456.75 Cr | +7.8% | +2.3% |
| EBIT | ₹14.91 Cr | N/A | |
| Net profit | ₹9.13 Cr | -45.8% | |
| EPS | ₹0.82 | -45.7% | |
| EBIT margin | 5.7% |
P&L walk
Revenue increased 7.8% YoY to ₹45674.50 lakh, but gross margin compressed to 74.5% from 82.4% as material costs rose faster than sales; EBITDA margin fell to 5.7%, while PAT declined 45.8% to ₹912.73 lakh and was supported by other income equal to 44% of PBT.
Segments
Cement generated ₹43372.47 lakh of revenue and ₹2434.40 lakh of segment profit, while Paints contributed ₹2302.03 lakh but dragged with a ₹936.40 lakh loss; the subsidiary's ₹7.28 lakh loss was immaterial.
Key positives
- Revenue increased 7.8% YoY to ₹45674.50 lakh, with Paints revenue growing 14.1% YoY to ₹2302.03 lakh.
- Finance costs declined 21.8% YoY to ₹204.78 lakh, partly offsetting the gross-margin pressure.
- Depreciation rose 3.6% YoY alongside a 3.8% increase in segment assets, producing a clean depreciation-to-asset-base cross-check.
- EPS of ₹0.82 declined 45.7% YoY versus PAT decline of 45.8%, indicating no material dilution divergence.
Key concerns
- Gross margin compressed 783bps YoY to 74.5%; raw-material cost as a percentage of revenue increased to 19.3% from 18.6%, while revenue grew 7.8% and materials consumed grew about 11.7%, indicating cost absorption rather than full pass-through.
- EBITDA margin fell 230bps YoY to 5.7%, continuing the YoY margin contraction seen in Q3FY26 and Q4FY26.
- Paints remained structurally loss-making at a ₹936.40 lakh segment loss despite 14.1% YoY revenue growth.
Earnings quality: includes non-operating other income
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