Stallion India Q1 FY27 Results (NSE: STALLION)
Signal: Steady quarter
The read
The quarter marked a margin inflection: revenue increased to ₹1210.460 lakh, +15.5% YoY, while raw-material cost declined to 62.7% of revenue from 91.0%, lifting PAT to ₹155.658 lakh, +42.0% YoY; however, the filing gives no volume, realisation or input-cost explanation, so the durability of the gross-margin expansion remains unconfirmed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,210.46 Cr | +15.5% | +10.1% |
| Net profit | ₹155.66 Cr | +42.0% | |
| EPS | ₹1.6 | +39.1% |
P&L walk
Standalone revenue was ₹1210.460 lakh, +15.5% YoY and +10.1% QoQ, while PAT reached ₹155.658 lakh, +42.0% YoY; the main disclosed operating swing was raw-material cost falling to 62.7% of revenue from 91.0% a year earlier, with the driver not disclosed.
Key positives
- Revenue increased to ₹1210.460 lakh, +15.5% YoY and +10.1% QoQ, reversing the weak revenue trajectory indicated by the prior-year comparison.
- Raw-material cost fell to 62.7% of revenue from 91.0% YoY, expanding gross margin by approximately 741bps after inventory changes; the filing does not disclose the cause.
- PAT rose to ₹155.658 lakh, +42.0% YoY, outpacing revenue growth by approximately 26.5 percentage points.
Key concerns
- The large gross-margin improvement is not attributed to input deflation, pricing or mix in the filing, leaving uncertainty over recurrence.
- Other income increased to ₹32.207 lakh from ₹0.737 lakh YoY, making non-operating income a material contributor to reported earnings growth.
- Depreciation increased to ₹9.873 lakh from ₹2.005 lakh YoY and finance costs increased to ₹9.18 lakh from ₹2.74 lakh, pointing to a rising investment and financing burden without disclosed asset-base or debt detail.
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