Shree Ganesh Rem Q1 FY27 Results (NSE: SGRL)
Signal: Revenue declined
The read
The trajectory has deteriorated for a fourth consecutive quarter of YoY margin contraction in the prior-results series: the filing's operating EBITDA margin fell to 23.3% from 29.6% in Q1FY26 and 34.3% in Q4FY26, while revenue fell 41.8% YoY; recovery is explicitly pushed to H2FY27, making European order normalisation and CRAMS conversion the key thesis inflection points.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹14.36 Cr | -41.8% | -57% |
| EBIT | ₹1.85 Cr | -66.6% | |
| Net profit | ₹1.12 Cr | -67.5% | |
| EPS | ₹0.87 | -67.5% | |
| EBIT margin | 29.9% |
P&L walk
Revenue declined to ₹14.36 crore (-41.8% YoY, -57% QoQ) as European customers deferred orders; XBRL EBITDA was ₹4.29 crore, EBIT ₹1.85 crore and PAT ₹1.12 crore, while other income of ₹0.94 crore represented 61.4% of PBT.
Segments
The filing does not provide a formal segment-results table, but pharma intermediates contributed ₹11.49 crore versus ₹2.88 crore from specialty chemicals; exports were ₹8.64 crore versus ₹5.72 crore domestic sales, with the disclosed weakness concentrated in European demand.
Key positives
- Finance cost fell 66% YoY to ₹0.32 crore and 64% QoQ, reducing the financing drag despite the revenue decline.
- The company is transitioning from an automatically terminated EU distributor arrangement to direct customer engagement, which management says should improve control over customer relationships after a couple of quarters.
- South-East Asia CRAMS engagements remain on track, with projects expected to contribute from H2FY27; Block 7 commissioning remains on course.
Key concerns
- Revenue fell 41.8% YoY to ₹14.36 crore and management said subdued European demand persisted into early Q2FY27, indicating the weakness is not confined to one month.
- Operating EBITDA excluding other income and exceptional items fell 54% YoY to ₹3.35 crore and margin compressed 624bps to 23.3%, extending the margin-contraction arc seen in Q4FY26, Q1FY26, Q2FY26 and Q3FY26.
- PAT fell 67.5% YoY to ₹1.12 crore, and other income of ₹0.94 crore represented 61.4% of consolidated PBT, making reported earnings quality dependent on non-operating income.
Earnings quality: includes non-operating other income
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