TTK Prestige Q1 FY27 Results (NSE: TTKPRESTIG)
Signal: Margin expansion
The read
Q1FY27 marks a sharp inflection: revenue growth accelerated to 33.6% YoY (from decelerating trends in prior quarters), and operating margin expanded 331bps YoY to 9.0% — the highest in 5 quarters — driven by volume recovery, input cost tailwind (RM-to-sales improved 200bps), and operating leverage. PAT more than doubled to ₹58.97 Cr, though boosted by ₹7.27 Cr exceptional credit from Labour Codes provision reversals. Excluding exceptional items, PAT still grew ~95% YoY, reflecting strong underlying operations. The turnaround from margin contraction in most of FY25-26 is evident.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹813.85 Cr | 33.6% | 11.6% |
| EBIT | ₹73.42 Cr | 108.4% | |
| Net profit | ₹58.97 Cr | 130.9% | |
| EPS | ₹4.33 | 123.2% | |
| EBIT margin | 9.0% |
P&L walk
Revenue surged 33.6% YoY to ₹813.85 Cr, driven by volume-led growth and likely premiumisation, with gross margin expanding ~200bps YoY on input cost tailwind (RM to sales improved 2.0pp). Operating leverage amplified EBITDA growth: EBIT grew 108.4% YoY, far outpacing revenue, as employee cost + other expenses grew at slower rates. PAT at ₹58.97 Cr (+130.9% YoY) benefited from exceptional credit of ₹7.27 Cr (Labour Codes adjustment reversals) and lower deferred tax. EPS tracked PAT growth, equity largely undiluted.
Segments
The company operates in a single segment of Kitchen & Home appliances. The consolidated revenue includes domestic parent (₹771.36 Cr standalone) and subsidiaries (TTK British Holdings + Horwood Homewares + Ultrafresh Modular Solutions). Subsidiaries contributed a combined revenue of ~₹42.5 Cr but a net loss of ~₹8.94 Cr before consolidation adjustments, dragging consolidated PAT below standalone.
Key positives
- Revenue grew 33.6% YoY to ₹813.85 Cr, the highest quarterly growth in 8 quarters, led by volume gains.
- EBIT margin expanded 331bps YoY to 9.0% on input cost tailwind and operating leverage (EBIT grew 108.4% vs revenue +33.6%).
- Input cost ratio (RM-to-sales) improved to 59.9% from 61.9% a year ago, aiding gross margin.
- PAT doubled to ₹58.97 Cr (excl. exceptional credit, PAT still ~95% YoY growth).
- Employee cost grew only 16.4% YoY vs 33.6% revenue growth, indicating strong fixed-cost leverage.
- Quarter-end cash position robust (no debt disclosed); D/E 0.09 from company fundamentals.
Key concerns
- Exceptional credit of ₹7.27 Cr from Labour Codes provision reversal inflated reported PAT — underlying PAT lower by this amount.
- UK subsidiary (TTK British Holdings) and Ultrafresh Modular Solutions remain loss-making, dragging consolidated results below standalone.
- Gross margin expansion was partly from one-time input cost tailwind — sustainability depends on commodity price stability and pricing power.
- Other expenses grew 18.6% YoY (₹178.78 Cr vs ₹150.82 Cr) — management attribution of ~₹12.41 Cr to 'business excellence' efforts may weigh on margins near-term.
Research and educational content only. Not investment advice.