Sh.Pushkar Chem. Q1 FY27 Results (NSE: SHREEPUSHK)
Signal: Growth reaccelerated
The read
The quarter marks a consolidated revenue recovery to ₹28,006.64 lakh (+10.0% YoY, +28.4% QoQ) after Q4FY26's -0.5% YoY decline, but the trajectory is margin-negative: gross margin contracted 775bps YoY to 31.86%, the second consecutive quarter of YoY operating-margin contraction in the prior series, while PAT growth of 9.4% was supported by other income of ₹487.11 lakh and offset by finance-cost growth of 128.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹280.07 Cr | +10.0% | +28.4% |
| Net profit | ₹22.93 Cr | +9.4% | |
| EPS | ₹7.09 | +9.4% |
P&L walk
Revenue increased to ₹28,006.64 lakh (+10.0% YoY, +28.4% QoQ), but gross margin fell to 31.86% from 39.61% YoY as raw-material cost rose to 69.05% of revenue from 59.40%; PAT nevertheless rose 9.4%, aided by higher other income, while finance costs more than doubled YoY.
Key positives
- Consolidated revenue recovered to ₹28,006.64 lakh, up 28.4% QoQ after Q4FY26 revenue declined 0.5% YoY.
- PAT increased 9.4% YoY to ₹2,292.65 lakh despite 775bps gross-margin compression, helped by other expenses growing only 2.4% YoY and other income rising 30.6% YoY.
- Standalone other expenses declined 16.3% YoY to ₹2,873.12 lakh, allowing standalone PAT to grow 11.8% YoY to ₹1,211.95 lakh.
Key concerns
- Consolidated gross margin compressed 775bps YoY to 31.86% as raw-material cost rose to 69.05% of revenue from 59.40%, indicating cost absorption rather than demonstrated pricing power.
- Consolidated finance costs increased 128.0% YoY to ₹264.33 lakh and 202.8% QoQ, a rising below-the-line burden.
- Revenue growth decelerated to 10.0% YoY from 31.4% in Q1FY26, while gross margin contracted for the second consecutive quarter in the recent results series.
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