Uday Jewellery Q1 FY27 Results (NSE: UDAYJEW)
Signal: Growth decelerated
The read
The quarter shows a sequential margin recovery but a worrying YoY gross-margin inflection: revenue grew 7.21% and derived EBITDA grew 13.70%, yet gross margin fell 2108bps to 16.44% as raw material cost reached 77.13% of revenue; PAT increased only 5.73% because finance cost rose 111.87%, while EPS growth lagged due to dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹143.27 Cr | +7.21% | -36.70% |
| Net profit | ₹10.67 Cr | +5.73% | |
| EPS | ₹3.15 | +1.94% | |
| EBIT margin | 11.82% |
P&L walk
Standalone revenue increased to ₹14327.36 lakh, +7.21% YoY, but gross margin compressed to 16.44% from 37.52% as raw material cost rose to 77.13% of revenue from 74.26%; EBITDA margin nevertheless improved to 11.82% from 11.14%, while PAT rose 5.73% to ₹1067.14 lakh.
Key positives
- Revenue from operations increased 7.21% YoY to ₹14327.36 lakh despite a 36.70% sequential decline.
- Derived EBITDA grew 13.70% YoY to ₹1693.19 lakh and EBITDA margin expanded 68bps YoY to 11.82%.
- Gross margin recovered 619bps sequentially from 10.25% in Q4FY26 to 16.44% in Q1FY27.
Key concerns
- Gross margin compressed 2108bps YoY to 16.44% while raw material cost increased to 77.13% of revenue from 74.26%, indicating cost absorption or adverse mix; the filing does not disclose the driver.
- Finance cost increased 111.87% YoY to ₹220.82 lakh, outpacing revenue growth and constraining PAT conversion.
- EPS grew only 1.94% versus PAT growth of 5.73%, with paid-up capital increasing 4.13% YoY.
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