Vadilal Enterp. Q1 FY27 Results (NSE: VADILENT)
Signal: Growth reaccelerated
The read
The quarter delivered revenue growth of +36.2% YoY and a QoQ turnaround from ₹4.22 crore loss to ₹23.30 crore PAT, but the core trajectory weakened: EBITDA growth of +17.3% lagged revenue by 18.9 percentage points and gross margin contracted 260bps to 22.0% as purchases and inventory costs rose to 78.0% of revenue. The key question is whether this margin absorption is transient, since the filing does not disclose its cause.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹703.66 Cr | 36.2% | +141.6% |
| EBIT | ₹33.22 Cr | 15.6% | |
| Net profit | ₹23.3 Cr | 15.9% | |
| EPS | ₹270.09 | 15.9% | |
| EBIT margin | 5.6% |
P&L walk
Standalone revenue increased to ₹703.66 crore, +36.2% YoY and +141.6% QoQ, but gross margin compressed to 22.0% from 24.6% YoY as purchases and inventory costs rose to 78.0% of revenue; EBITDA grew only +17.3% YoY to ₹39.2 crore, while PAT rose +15.9% to ₹23.30 crore.
Key positives
- Revenue reached ₹703.66 crore, +36.2% YoY, indicating strong top-line momentum despite the absence of disclosed volume or mix data.
- PAT increased +15.9% YoY to ₹23.30 crore and turned positive from a ₹4.22 crore QoQ loss.
- Finance costs declined 13.8% QoQ to ₹2.06 crore, while EPS tracked PAT growth at +15.9% YoY without a dilution signal.
Key concerns
- Gross margin compressed 260bps YoY to 22.0%, with purchases plus inventory changes rising to 78.0% of revenue from 75.4% YoY; the filing does not disclose the driver.
- EBITDA grew only +17.3% YoY to ₹39.2 crore against revenue growth of +36.2%, reducing EBITDA margin to 5.6% from an implied 6.5% YoY.
- Employee benefits increased +56.1% YoY to ₹21.20 crore, faster than revenue, although other expenses increased at a slower +17.7%.
Research and educational content only. Not investment advice.