Sunrakshakk Inds Q1 FY27 Results (NSE: SUNRAKSHAK)
Signal: Growth reaccelerated
The read
The business is still scaling rapidly through FMCG, with consolidated revenue of ₹27633.42 lakh, +120.6% YoY, but the trajectory is mixed: EBITDA margin slipped to 8.3% from approximately 9.5% YoY as raw-material intensity increased, while PAT growth was partly flattered by ₹181.17 lakh from the depreciation-method change and reported EPS does not reconcile with PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹276.33 Cr | 120.6% | +39.8% |
| EBIT | ₹20.5 Cr | 127.0% | |
| Net profit | ₹15.04 Cr | 130.7% | |
| EPS | ₹4.85 | -59.7% | |
| EBIT margin | 8.3% |
P&L walk
Consolidated revenue increased to ₹27633.42 lakh, +120.6% YoY and +39.8% QoQ, led by FMCG; gross margin compressed to 24.4% from approximately 29.1% YoY as raw-material intensity rose, EBITDA margin fell to 8.3%, and PAT reached ₹1504.18 lakh, with ₹181.17 lakh of PAT benefit from lower depreciation.
Segments
FMCG drove the group, with revenue of ₹25030.33 lakh, +149.0% YoY, and segment result of ₹2039.11 lakh, +188.7%, while textile revenue grew only 5.3% and textile result fell 94.4% to ₹11.08 lakh; the subsidiary contribution creates a material consolidated-versus-standalone gap.
Key positives
- FMCG revenue reached ₹25030.33 lakh, +149.0% YoY, and FMCG segment result rose +188.7% to ₹2039.11 lakh, establishing the consolidated growth engine.
- Consolidated revenue grew +120.6% YoY to ₹27633.42 lakh, while operating expenses excluding depreciation grew 65.0%, providing partial cost absorption as the business scaled.
- Standalone gross margin expanded approximately 1427bps YoY to 34.5%, with raw-material-related costs falling to approximately 65.3% of revenue from 81.3%.
Key concerns
- Consolidated gross margin compressed approximately 470bps YoY to 24.4% as raw-material-related costs increased to approximately 75.6% of revenue from 70.9%, with no driver disclosed; revenue growth did not translate into EBITDA margin expansion.
- Textile segment result fell 94.4% YoY to ₹11.08 lakh despite 5.3% revenue growth, leaving group earnings increasingly dependent on FMCG.
- Consolidated PAT includes a ₹181.17 lakh after-tax benefit from the WDV-to-SLM depreciation change, equivalent to approximately 12.0% of reported PAT.
- XBRL-reported consolidated EPS declined 59.7% YoY to ₹4.85 despite PAT growth of 130.7%, requiring reconciliation before using EPS as a trend signal.
Research and educational content only. Not investment advice.