Vardhman Polytex Q1 FY27 Results (NSE: VARDMNPOLY)
Signal: Steady quarter
The read
The operating trajectory improved modestly in Q1FY27, with revenue at ₹60.75 crore (+2.0% YoY), EBITDA at ₹6.86 crore (+26.8%) and EBIT at ₹5.15 crore (+32.4%), but the apparent PAT inflection to ₹311.19 crore is non-recurring because 99.5% of PBT came from an exceptional item; recurring profit before exceptional items was only ₹1.63 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹60.75 Cr | 2.0% | N/A |
| EBIT | ₹5.15 Cr | 32.4% | |
| Net profit | ₹311.19 Cr | 163684.2% | |
| EPS | ₹6.44 | N/A | |
| EBIT margin | 11.3% |
P&L walk
Revenue increased 2.0% YoY to ₹60.75 crore, EBITDA rose 26.8% to ₹6.86 crore and EBIT rose 32.4% to ₹5.15 crore, but PAT of ₹311.19 crore was driven by an exceptional item rather than operating earnings.
Key positives
- Revenue increased 2.0% YoY to ₹60.75 crore, reversing the weak recent sales trajectory indicated by the prior-results series.
- EBITDA grew 26.8% YoY to ₹6.86 crore against 2.0% revenue growth, while EBIT rose 32.4% to ₹5.15 crore.
- Security cover was 7.84x for the NCDs, above the 4.0x minimum required under the debenture trust deed.
Key concerns
- Recurring operating profit before exceptional items was only ₹1.63 crore despite reported PAT of ₹311.19 crore.
- The debt-equity ratio increased to 0.79x from 0.22x YoY following the ₹75 crore NCD fund-raising.
- Revenue growth was only 2.0% YoY, so the 26.8% EBITDA growth needs confirmation through sustained sales growth rather than a single-quarter margin movement.
Earnings quality: includes an exceptional item
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