Shringar House Q1 FY27 Results (NSE: SHRINGARMS)
Signal: Growth decelerated
The read
The key inflection is that revenue continues to grow rapidly at 64.9% YoY, but the 420bps gross-margin compression to 10.4% has reduced EBITDA growth to 21.8% and PAT growth to 19.3%; the next thesis driver is recovery in raw-material economics or pricing power, not demand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹548.49 Cr | 64.9% | -24.4% |
| EBIT | ₹48.99 Cr | 20.8% | |
| Net profit | ₹34 Cr | 19.3% | |
| EPS | ₹3.53 | -10.6% | |
| EBIT margin | 9.2% |
P&L walk
Revenue rose 64.9% YoY to ₹5,484.90 million, but gross margin fell 420bps to 10.4%, limiting EBITDA growth to 21.8% and PAT growth to 19.3%; EPS declined 10.6% despite higher profit.
Key positives
- Revenue reached ₹5,484.90 million, up 64.9% YoY, indicating continued strong business momentum and volume growth.
- EBITDA remained positive at ₹502.90 million and grew 21.8% YoY despite a 420bps gross-margin compression.
- EBIT grew 20.8% YoY to ₹489.90 million and PAT grew 19.3% YoY to ₹340.00 million, keeping the operating franchise profitable.
Key concerns
- Gross margin fell 420bps YoY to 10.4% as raw material cost rose to 89.6% of revenue from 85.4%; the filing does not disclose whether the pressure is input-cost, pricing, or mix driven.
- Revenue grew 64.9% YoY but EBITDA grew only 21.8%, showing that incremental sales are currently converting into profit at a materially lower rate.
- EPS declined 10.6% to ₹3.53 despite PAT growth of 19.3%, weakening per-share earnings momentum.
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