Sunshield Chem. Q1 FY27 Results (NSE: SUNSHIEL)
Signal: Margin expansion
The read
The key inflection is a 570bps YoY expansion in EBITDA margin to 16.8%, driven principally by materials intensity falling to 69.7% of revenue from 78.3%; revenue grew 11.9% YoY, EBITDA grew 52.0% and PAT grew 97.8%, but the 65.3% EPS growth versus 97.8% PAT growth shows that shareholder-level compounding was diluted by the larger equity base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹127.47 Cr | 11.9% | +16.2% |
| EBIT | ₹18.25 Cr | 59.7% | |
| Net profit | ₹13.49 Cr | 97.8% | |
| EPS | ₹15.34 | 65.3% | |
| EBIT margin | 16.8% |
P&L walk
Revenue increased 11.9% YoY and 16.2% QoQ to ₹12,747 lakh, while lower material intensity lifted gross margin to 30.3% and EBITDA margin to 16.8%; EBITDA grew 52.0% YoY, EBIT grew 59.7% and PAT grew 97.8%, with limited support from other income.
Key positives
- Revenue increased 11.9% YoY to ₹12,747 lakh, with no volume or realisation split disclosed.
- Gross margin expanded 420bps YoY to 30.3% as cost of materials consumed fell to 62.4% of revenue from 76.4%; the filing does not disclose the precise cause, so persistence requires confirmation.
- EBITDA rose 52.0% YoY to ₹2,140 lakh and EBITDA margin expanded 570bps to 16.8%, materially ahead of revenue growth.
- Finance costs declined 91.2% YoY to ₹20 lakh, strengthening the conversion of operating gains into PBT.
Key concerns
- EPS grew 65.3% YoY to ₹15.34, materially below PAT growth of 97.8%, while paid-up equity share capital increased 19.6% YoY from ₹735 lakh to ₹879 lakh.
- The filing does not disclose chemical volumes, realisations, capacity utilisation or product mix, limiting attribution of the 11.9% revenue growth and 420bps gross-margin expansion.
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