T N Petro Prod. Q1 FY27 Results (NSE: TNPETRO)
Signal: Margin expansion
The read
The key inflection is the post-shutdown restart: revenue from operations rebounded to ₹77,792 lakh, +68.0% YoY, and operating margin expanded to 13.6% from 10.3% YoY, but the quarter is not fully comparable because the LAB/HCD expansion shutdown affected Q4FY26; the higher ₹1,365 lakh depreciation and ₹754 lakh finance cost show that the expansion is now entering the earnings base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹777.92 Cr | +68.0% | +526.2% |
| Net profit | ₹80.11 Cr | +127.3% | |
| EPS | ₹8.9 | +127.0% | |
| EBIT margin | 13.6% |
P&L walk
Consolidated revenue from operations increased to ₹77,792 lakh, +68.0% YoY, while operating profit before exceptional items rose to ₹10,607 lakh from ₹4,764 lakh and PAT reached ₹8,011 lakh, +127.3% YoY; the sharp sequential improvement primarily reflects the end of the January–March planned shutdown for the LAB and HCD expansion.
Key positives
- Revenue from operations reached ₹77,792 lakh, +68.0% YoY, reversing the shutdown-affected ₹12,422 lakh prior quarter.
- Operating profit before exceptional items increased to ₹10,607 lakh from ₹4,764 lakh YoY, lifting operating margin by 335bps to 13.6%.
- Power and fuel fell to 18.6% of revenue from 23.3% YoY, while referral charges fell to 7.7% from 16.6%, supporting the post-shutdown recovery.
- EPS rose to ₹8.90 from ₹3.92 YoY, broadly tracking the 127.3% PAT growth without evidence of equity dilution.
Key concerns
- Raw material consumption increased to 61.9% of revenue from 48.3% YoY, leaving gross margin broadly unchanged at 50.4% despite the strong revenue recovery.
- Finance costs rose to ₹754 lakh from ₹103 lakh YoY, increasing the financing drag as the expansion ramps up.
- The March 2026 shutdown makes the +526.2% sequential revenue growth and +890.0% sequential PAT growth non-recurring as a comparison base.
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