Saraswati Saree Q1 FY27 Results (NSE: SSDL)
Signal: Growth reaccelerated
The read
The key trajectory issue is operating softness: revenue grew only 1.9% YoY to ₹1,475.90 million and EBITDA fell 6.8% to ₹92.00 million, while the 4.1% PAT increase to ₹66.05 million was rescued by sharply lower depreciation and finance costs rather than stronger core profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹147.59 Cr | 1.9% | 10.5% |
| EBIT | ₹8.68 Cr | 0.9% | |
| Net profit | ₹6.61 Cr | 4.1% | |
| EPS | ₹1.7 | 5.6% | |
| EBIT margin | 6.2% |
P&L walk
Revenue increased to ₹1,475.90 million, +1.9% YoY and +10.5% sequentially, but EBITDA declined 6.8% YoY to ₹92.00 million as EBITDA margin narrowed to 6.2%; PAT still rose 4.1% to ₹66.05 million because depreciation fell 58.8% and finance costs fell 94.3%.
Key positives
- PAT increased 4.1% YoY to ₹66.05 million and EPS rose 5.6% to ₹1.70 despite a 6.8% EBITDA decline.
- Finance costs fell 94.3% YoY to ₹0.15 million, indicating minimal current-period financing drag.
- Revenue increased 10.5% sequentially to ₹1,475.90 million, although the year-on-year growth rate remained modest at 1.9%.
Key concerns
- EBITDA declined 6.8% YoY to ₹92.00 million and EBITDA margin contracted 58bps to 6.2% despite positive revenue growth.
- Employee benefits expense increased 25.5% YoY to ₹38.63 million, materially faster than the 1.9% revenue growth.
- Gross margin narrowed approximately 118bps YoY to 10.7%, and the filing does not disclose whether the change was volume, pricing or mix driven.
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