S P I C Q1 FY27 Results (NSE: SPIC)
Signal: Margin pressure
The read
The quarter shows revenue recovery to ₹848.81 crore, +8.73% YoY, but a sharp margin setback: EBITDA margin contracted 651bps YoY to 6.17% after raw-material intensity rose 911bps to 83.62%; the recent margin expansion seen in Q3FY26 and Q4FY26 has therefore not yet become durable, while ₹19.90 crore of JV/associate profit and a ₹2.44 crore consolidated tax charge cushioned the operating decline and kept PAT at ₹60.18 crore, down 9.79%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹848.81 Cr | +8.73% | +45.30% |
| EBIT | ₹42.72 Cr | -52.10% | |
| Net profit | ₹60.18 Cr | -9.79% | |
| EPS | ₹2.96 | -9.76% | |
| EBIT margin | 6.17% |
P&L walk
Consolidated revenue increased to ₹848.81 crore, +8.73% YoY and +45.30% QoQ, but gross margin compressed to 22.76% from 28.83% YoY as raw materials rose to 83.62% of revenue from 74.51%; operating profit fell 52.10% YoY to ₹42.72 crore, while ₹19.90 crore of JV/associate profit and lower tax limited PAT decline to 9.79%.
Segments
The company reports a single fertilizer segment, while the material consolidated uplift versus standalone comes from ₹19.90 crore of JV and associate profit, up 69.22% YoY, lifting consolidated PAT to ₹60.18 crore from standalone PAT of ₹44.88 crore.
Key positives
- Revenue from operations was ₹848.81 crore, +8.73% YoY and +45.30% QoQ, reversing the Q4FY26 revenue decline of 22.6% YoY.
- JV and associate profit rose to ₹19.90 crore, +69.22% YoY, increasing the consolidated PAT contribution relative to the standalone business.
- Finance cost declined 33.39% YoY to ₹7.86 crore, despite rising 56.89% QoQ.
- Urea production was 1.87 lac MT and sales were 1.82 lac MT, with the plant operating for 91 days.
Key concerns
- Gross margin compressed 607bps YoY to 22.76% as raw materials rose to 83.62% of revenue from 74.51%, indicating that cost inflation was not fully absorbed through reported revenue growth of 8.73%.
- EBITDA fell 46.15% YoY to ₹52.41 crore and EBITDA margin declined 651bps to 6.17%, reversing the margin expansion recorded in Q3FY26 and Q4FY26.
- Standalone PAT fell 22.97% YoY to ₹44.88 crore, materially weaker than the 9.79% consolidated decline because group earnings rely on JV and associate contributions.
- Subsidy of ₹714.83 crore was booked using a provisional retention price; final government determination could require adjustments with consequential earnings impact.
Research and educational content only. Not investment advice.