TPL Plastech Q1 FY27 Results (NSE: TPLPLASTEH)
Signal: Margin pressure
The read
Revenue growth accelerated sharply to 37.6% YoY, the highest in at least 12 quarters, but operating margin contracted for the second consecutive quarter as raw material cost pressures squeezed gross margin by 360bps YoY. The company's strong volume growth is a positive, but margin compression at the gross level needs monitoring – if input costs sustain, the earnings trajectory may disappoint despite top-line momentum.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹124.38 Cr | 37.6% | 9.0% |
| EBIT | ₹9.75 Cr | 13.0% | |
| Net profit | ₹6.52 Cr | 19.2% | |
| EPS | ₹0.84 | 20.0% | |
| EBIT margin | 9.1% |
P&L walk
Revenue surged 37.6% YoY, driven by volume/mix, but gross margin collapsed from 20.4% to 16.8% (360bps) as raw material cost rose to 81.5% of sales vs 80.7% a year ago. Employee costs grew only 7% and other expenses 17%, providing some operating leverage, but not enough to offset gross margin drag. EBITDA margin fell ~200bps to 9.1%. PAT grew 19.2% YoY, roughly in line with operating profit.
Segments
Single segment 'Industrial Packaging'; subsidiary Prokube Containers had no revenue and a negligible loss of ₹1.99 Lakh, making standalone vs consolidated differences immaterial.
Key positives
- Revenue grew 37.6% YoY to ₹12,438 Lakh, accelerating from ~11% in prior year quarters.
- EPS grew 20.0% YoY to ₹0.84, matching PAT growth.
- Operating leverage evident: employee costs +7% and other expenses +17% far below revenue growth.
- Finance costs declined 7.1% YoY, indicating lower debt.
Key concerns
- Gross margin compressed 360bps YoY to 16.8% as raw material cost % of sales rose to 81.5% vs 80.7%.
- EBITDA margin contracted ~200bps YoY to 9.1%, reversing prior expansion.
- PAT margin fell from 6.05% to 5.24% YoY.
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