TGV Sraac Q1 FY27 Results (NSE: TGVSL)
Signal: Steady quarter
The read
The key inflection is not the 17.2% PAT growth but the sharp material-cost headwind: raw-material intensity rose to 35.0% of revenue from 29.3%, compressing gross margin by about 2,370bps and holding EBITDA growth to 4.1% despite 10.6% revenue growth; lower depreciation and finance costs prevented a weaker bottom line.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹543.08 Cr | 10.6% | +6.3% |
| EBIT | ₹67.7 Cr | 14.3% | |
| Net profit | ₹45.42 Cr | 17.2% | |
| EPS | ₹4.24 | 17.5% | |
| EBIT margin | 19% |
P&L walk
Revenue increased to ₹54,308 lakh, +10.6% YoY and +6.3% QoQ, but gross margin fell to about 47.2% from 70.9% as raw-material cost rose to 35.0% of revenue from 29.3%; EBITDA increased only 4.1% to ₹10,333 lakh while EBIT rose 14.3% to ₹6,770 lakh on lower depreciation and finance costs, and PAT rose 17.2% to ₹4,542 lakh without a material other-income or exceptional-item distortion.
Segments
Chemicals drove the group, with revenue of ₹53,661 lakh, +10.0% YoY, and segment result of ₹6,649 lakh, +12.2%; Oils & Fats remained loss-making at ₹74 lakh despite improving from a ₹188 lakh loss, while the Power Plant contributed a ₹6 lakh discontinuing loss.
Key positives
- Chemicals segment result rose 12.2% YoY to ₹6,649 lakh, ahead of segment revenue growth of 10.0%, indicating relative resilience in the core business.
- PAT increased 17.2% YoY to ₹4,542 lakh while EPS rose 17.5% to ₹4.24, with other income of ₹350 lakh and no exceptional items, so earnings quality was clean.
- Finance costs declined 19.9% YoY to ₹553 lakh and depreciation declined 11.0% to ₹3,563 lakh, supporting EBIT growth of 14.3% to ₹6,770 lakh.
Key concerns
- Gross margin fell approximately 2,370bps YoY to 47.2% as material cost increased 32.4% YoY to ₹19,033 lakh, or 35.0% of revenue versus 29.3%; the filing does not disclose the cause or any pricing pass-through.
- EBITDA rose only 4.1% YoY to ₹10,333 lakh against 10.6% revenue growth, with EBITDA margin reported at 19%; the margin pressure appears variable-cost-led rather than operating-leverage-led.
- Oils & Fats remained loss-making at ₹74 lakh in Q1FY27, despite improving from a ₹188 lakh loss YoY.
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