S Chand & Compan Q1 FY27 Results (NSE: SCHAND)
Signal: Loss widened
The read
The quarter confirms the company's sharp academic-seasonality: consolidated revenue grew 11.6% YoY to ₹1,145.48 million but remained far below Q4's ₹5,478.24 million, and EBITDA margin stayed negative at -8.4%; gross margin expanded 324bps on lower raw-material intensity, but this has not yet translated into operating profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹114.55 Cr | +11.6% | -79.1% |
| EBIT | ₹-20.1 Cr | -2.5% | |
| Net profit | ₹-18.73 Cr | -33.2% | |
| EPS | ₹-5.07 | -34.5% | |
| EBIT margin | -8.4% |
P&L walk
Consolidated revenue rose to ₹1,145.48 million, +11.6% YoY, but the group remained loss-making with EBITDA margin at -8.4% and PAT loss widening to ₹187.30 million from ₹140.66 million, reflecting the seasonal trough outside the January-March academic-sales period.
Segments
The group materially outperformed the parent on scale but not profitability: consolidated revenue was ₹1,145.48 million versus standalone ₹416.78 million, while nine subsidiaries reported ₹530.21 million revenue and a ₹25.32 million net loss, contributing to the consolidated ₹187.30 million loss versus the standalone ₹90.23 million loss.
Key positives
- Consolidated revenue reached ₹1,145.48 million, +11.6% YoY, despite the filing's identified post-academic-seasonality trough.
- Gross margin expanded 324bps YoY to 70.3% as raw-materials and inventory cost fell to 29.7% of revenue from 32.9%; the filing does not identify whether this is sustainable.
- Finance cost declined 44.7% QoQ to ₹28.71 million, providing some support during the low-revenue quarter.
Key concerns
- Consolidated EBITDA margin remained negative at -8.4%, and PAT loss widened 33.2% YoY to ₹187.30 million.
- Standalone revenue declined 2.4% YoY while employee cost increased 4.9% YoY to ₹182.34 million, indicating operating-cost pressure in the parent.
- Nine subsidiaries generated ₹530.21 million of revenue but reported a ₹25.32 million net loss, dragging consolidated profitability below the standalone result.
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