Seshasayee Paper Q1 FY27 Results (NSE: SESHAPAPER)
Signal: Margin expansion
The read
Q1FY27 marks a sharp inflection in margins after several quarters of contraction: EBITDA margin expanded 229bps YoY to 11.34% on the back of significant input cost deflation (raw material % of revenue down ~1010bps) and operating leverage. Revenue growth of 27.7% YoY is the highest in recent quarters, and net profit more than doubled. The near debt-free balance sheet remains a support.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹492.08 Cr | +27.7% | -16.9% |
| EBIT | ₹44.19 Cr | +89.4% | |
| Net profit | ₹31.91 Cr | +106.9% | |
| EPS | ₹5.3 | +107.0% | |
| EBIT margin | 11.34% |
P&L walk
Revenue grew 27.7% YoY to Rs 492 Cr, driven by volume recovery and pricing; EBITDA margin expanded 229bps to 11.34% as input costs (raw material + power) declined sharply and fixed costs grew much slower than sales, delivering operating leverage. PAT more than doubled to Rs 31.9 Cr.
Key positives
- Revenue grew 27.7% YoY to ₹492 Cr, best in several quarters.
- EBITDA margin expanded 229bps YoY to 11.34%, driven by input cost deflation and operating leverage.
- Net profit more than doubled to ₹31.9 Cr (up 107% YoY).
- Fixed costs (employee, depreciation, finance) grew well below revenue growth, demonstrating operating leverage.
- Company remains debt-free (D/E = 0 from fundamentals).
Key concerns
- Revenue declined 16.9% QoQ, though partly seasonal (Q4 typically higher).
- Other income fell 12.3% YoY to ₹11.9 Cr, reducing a modest cushion.
Research and educational content only. Not investment advice.