Sheetal Cool Q1 FY27 Results (NSE: SCPL)
Signal: Margin expansion
The read
The key trajectory is a margin-quality split: revenue grew 17.5% YoY and derived EBITDA grew 33.4% with a 126bps EBITDA-margin expansion, but gross margin compressed 280bps as raw material cost rose to 71.0% of revenue from 59.0%; the improvement therefore depended on sharply lower other-expense intensity rather than input-cost tailwinds.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹132.64 Cr | +17.5% | -0.5% |
| EBIT | ₹11.63 Cr | +33.1% | |
| Net profit | ₹6.99 Cr | +30.8% | |
| EPS | ₹6.66 | +30.6% | |
| EBIT margin | 10.6% |
P&L walk
Revenue was ₹13,264.20 lakh, +17.5% YoY and -0.5% QoQ; gross margin compressed to 27.6% from 30.1% as raw material cost rose to 71.0% of revenue from 59.0%, but lower other-expense intensity lifted EBITDA margin to 10.6% from 9.3%, while PAT increased 30.8% YoY to ₹698.95 lakh.
Key positives
- Revenue increased to ₹13,264.20 lakh, +17.5% YoY, despite being broadly flat QoQ at -0.5%.
- Derived EBITDA grew 33.4% YoY versus revenue growth of 17.5%, a +15.9 percentage-point growth gap, while EBITDA margin expanded 126bps to 10.6%.
- Employee benefits expense rose 15.3% YoY to ₹730.95 lakh, slower than revenue growth, supporting fixed-cost absorption; other expenses declined 10.8% YoY to ₹1,531.97 lakh.
- PAT rose 30.8% YoY to ₹698.95 lakh and EPS rose 30.6% to ₹6.66, with EPS tracking PAT cleanly.
Key concerns
- Gross margin compressed 280bps YoY to 27.6% as raw material cost increased to 71.0% of revenue from 59.0%; the filing does not disclose the cause.
- Revenue declined 0.5% QoQ, while EBITDA margin fell 111bps and PAT fell 14.4% QoQ to ₹698.95 lakh.
- Finance costs increased 47.6% YoY to ₹228.87 lakh, materially faster than revenue and depreciation-adjusted operating profit.
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