Swaraj Suiting Q1 FY27 Results (NSE: SWARAJ)
Signal: Steady quarter
The read
The key inflection is sequential rather than YoY: revenue fell 11.5% QoQ and EBITDA margin improved only to 20.6% from an estimated 19.4%, while the YoY comparison remains weak on margin with an 836bps gross-margin compression and 1,182bps EBITDA-margin decline; PAT growth was helped by the much larger revenue base but EPS growth was diluted by the expanded share count.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹183.37 Cr | +138.8% | -11.5% |
| EBIT | ₹32.24 Cr | N/A | |
| Net profit | ₹16.42 Cr | +100.2% | |
| EPS | ₹6.23 | +52.7% | |
| EBIT margin | 20.6% |
P&L walk
Consolidated revenue increased 138.8% YoY but declined 11.5% QoQ; gross margin compressed 836bps YoY as purchase of stock-in-trade rose to 15.9% of revenue, while EBITDA margin fell to 20.6% from an estimated 32.4% and PAT still grew 100.2% YoY.
Segments
The company reports a single operating segment, Textiles; the near-zero gap between consolidated PAT of ₹1,621.97 lakh and standalone PAT of approximately ₹1,622.00 lakh indicates that subsidiaries or associates did not materially change the group result in this quarter.
Key positives
- Revenue increased 138.8% YoY to ₹18,336.62 lakh, continuing the company's high-growth trajectory despite an 11.5% QoQ decline.
- PAT increased 100.2% YoY to ₹1,621.97 lakh, while other income of ₹222.76 lakh remained below 20% of PBT and did not dominate earnings quality.
- EBITDA margin improved 123bps QoQ to 20.6% from an estimated 19.4%, indicating sequential operating stabilisation after the prior-quarter margin trough.
Key concerns
- Gross margin compressed 836bps YoY to 34.9% as purchase of stock-in-trade rose to ₹2,922.34 lakh, or 15.9% of revenue, from ₹915.02 lakh, or 11.9%, with the driver not disclosed.
- Financial costs increased 24.6% YoY to ₹1,145.81 lakh and 118.8% QoQ, absorbing part of the operating profit improvement.
- Basic EPS growth of 52.7% materially lagged PAT growth of 100.2% as paid-up equity share capital increased 20.0% to ₹2,641.83 lakh.
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