Sharat Industrie Q1 FY27 Results (NSE: SHINDL)
Signal: Growth decelerated
The read
The key inflection is the rebound in operating profitability: EBITDA margin rose to 10.7% from 2.84% in Q4FY26 and PAT reached ₹627.97 lakh from ₹5.43 lakh, but revenue growth slowed to +4.4% YoY from +24.8%, while raw-material intensity worsened to 83.1% from 77.6%, so the durability of the margin recovery remains unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹120.3 Cr | 4.4% | +2.6% |
| EBIT | ₹11.62 Cr | 13.4% | |
| Net profit | ₹6.28 Cr | 16.9% | |
| EPS | ₹1.6 | 15.1% | |
| EBIT margin | 10.7% |
P&L walk
Consolidated revenue increased to ₹12,030.17 lakh, +4.4% YoY and +2.6% QoQ, while EBITDA rose +12.6% YoY to ₹1,288 lakh and margin expanded to 10.7%; the recovery was driven by lower other expenses and inventory-related cost absorption, although raw-material intensity increased to 83.1% of revenue from 77.6%.
Key positives
- EBITDA increased +12.6% YoY to ₹1,288 lakh versus revenue growth of +4.4%, and EBITDA margin improved to 10.7% from 9.76% in Q1FY26.
- PAT grew +16.9% YoY to ₹627.97 lakh despite other income of negative ₹9.13 lakh, indicating that the profit improvement was operational rather than treasury-income-led.
- Other expenses declined 9.6% YoY to ₹1,517.50 lakh, helping offset the 28.8% rise in employee costs.
Key concerns
- Revenue growth decelerated to +4.4% YoY from +24.8% in Q4FY26, weakening the volume-growth trajectory.
- Raw-material cost increased +11.8% YoY and reached 83.1% of revenue versus 77.6% a year earlier, while gross margin compressed 54bps YoY to 25.5%.
- The Chief Financial Officer resigned effective 10 August 2026 and the Company Secretary was appointed CFO in addition to his existing role, creating a finance-function transition risk.
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