Sika Interplant Q1 FY27 Results (NSE: SIKA)
Signal: Margin expansion
The read
The immediate inflection is a third consecutive quarter of margin expansion, with EBITDA margin at 25.3%, up 692bps YoY after 20.63% in Q2FY26 and 23.06% in Q3FY26; however, revenue fell 37.0% YoY because supply-chain disruptions deferred deliveries, so the margin improvement needs confirmation when execution normalises.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹42.86 Cr | -37.0% | +3.7% |
| EBIT | ₹10.54 Cr | -24.6% | |
| Net profit | ₹8.4 Cr | -18.8% | |
| EPS | ₹3.96 | -18.9% | |
| EBIT margin | 25.3% |
P&L walk
Revenue fell to 4,285.79 lakh, down 37.0% YoY, as geopolitical supply-chain disruptions deferred customer deliveries; EBITDA declined 23.7% to 1,086 lakh but margin expanded to 25.3%, while PAT declined 18.8% to 840.21 lakh with other income contributing 251.50 lakh.
Key positives
- EBITDA margin reached 25.3%, up 692bps YoY, while EBITDA fell 23.7% against a 37.0% revenue decline, showing substantial cost and material-intensity support.
- Raw material cost declined to 76.6% of revenue from 80.6% YoY, and gross margin expanded by 360bps to 28.5%.
- Standalone and consolidated PAT were closely aligned at 847.52 lakh and 840.21 lakh respectively, indicating no material subsidiary drag on current earnings.
Key concerns
- Revenue declined 37.0% YoY to 4,285.79 lakh after management cited geopolitical supply-chain disruptions and deferred customer deliveries.
- The 25.3% EBITDA margin expansion occurred during a 37.0% revenue decline and may not be durable if supply-chain normalisation brings back execution-related costs.
- Finance cost increased 49.8% YoY to 20.52 lakh despite reported borrowings of 344.09 lakh.
Earnings quality: includes non-operating other income
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