Sigachi Indust. Q1 FY27 Results (NSE: SIGACHI)
Signal: Loss reversed
The read
Q1FY27 marks a PAT turnaround to ₹675.94 lakh from a ₹10,035.47 lakh loss, but the underlying trajectory remains fragile: revenue fell 5.4% YoY, EBITDA fell 37.5%, and margin declined 440bps to 14.4% despite a 291bps gross-margin tailwind from lower raw-material intensity.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹121.27 Cr | -5.4% | -0.5% |
| EBIT | ₹13.1 Cr | -43.8% | |
| Net profit | ₹6.76 Cr | N/A | |
| EPS | ₹0.18 | N/A | |
| EBIT margin | 14.4% |
P&L walk
Revenue declined to ₹12,127.38 lakh, down 5.4% YoY, while EBITDA margin fell to 14.4% from 18.8%; lower raw-material intensity partly helped gross margin, but employee and other operating costs remained high relative to sales. Profit attributable to shareholders recovered to ₹675.94 lakh from a ₹10,035.47 lakh loss because the prior-year period contained a large exceptional loss.
Segments
The Pharmaceuticals segment contributed ₹10,821.40 lakh of consolidated revenue and ₹1,081.67 lakh of result, while Operational and Management added ₹1,305.97 lakh of revenue and ₹228.61 lakh of result; the ₹12,127.38 lakh consolidated revenue versus ₹9,827.58 lakh standalone revenue indicates subsidiaries are materially supporting the group.
Key positives
- Consolidated attributable PAT recovered to ₹675.94 lakh from a ₹10,035.47 lakh loss YoY, with earnings quality marked clean because other income and exceptional items were below 20% of PBT.
- Gross margin expanded 291bps YoY to 54.86% as raw-material cost fell to 45.14% of revenue from 48.05%.
- Finance costs declined 8.9% YoY to ₹301.31 lakh and 30.5% QoQ, improving the conversion of operating profit into PBT.
- The Pharmaceuticals segment generated ₹10,821.40 lakh revenue and ₹1,081.67 lakh result, materially larger than the ₹1,305.97 lakh revenue and ₹228.61 lakh result from Operational and Management.
Key concerns
- Revenue declined 5.4% YoY to ₹12,127.38 lakh, extending the weak demand trend after the prior three quarters of YoY revenue contraction.
- EBITDA fell 37.5% YoY to ₹1,752 lakh and margin compressed 440bps to 14.4%, despite gross-margin expansion.
- Employee costs rose 13.9% YoY to ₹2,844.77 lakh while revenue declined 5.4%, indicating poor fixed-cost absorption rather than operating leverage.
- Standalone revenue fell 11.4% YoY to ₹9,827.58 lakh and standalone EBITDA fell 51.3%, showing that the group-level result is materially dependent on subsidiaries.
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