Veljan Denison Q1 FY27 Results (NSE: VELJAN)
Signal: Margin expansion
The read
Margin inflection: Q1FY27 EBITDA margin of 28.3% is the highest in the last five quarters, driven by raw material cost tailwind (gross margin expanded ~460bps YoY) and controlled job & employee costs. Revenue growth remains modest (2% YoY) but profitability improvement is clear; PAT +4.7% YoY to ₹7.68 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹43.48 Cr | 2.0% | -5.3% |
| EBIT | ₹8.83 Cr | 15.4% | |
| Net profit | ₹7.68 Cr | 4.7% | |
| EPS | ₹17.06 | 4.7% | |
| EBIT margin | 28.3% |
P&L walk
Revenue grew modestly 2% YoY, but gross margin expanded sharply (~460bps from falling raw material costs) driving EBITDA margin to 28.3%, the highest in recent quarters. PAT growth lagged slightly due to higher depreciation and finance cost.
Key positives
- EBITDA margin expanded 290bps YoY to 28.3% – highest in 5 quarters – on raw material cost deflation (RM % of revenue down 430bps).
- Consolidated PAT grew 4.7% YoY to ₹7.68 Cr despite modest revenue growth, demonstrating margin improvement.
- Debt-free company (D/E 0) with strong cash generation; finance cost remains low at ₹0.13 Cr.
- EPS ₹17.06, up 4.7% YoY, with no equity dilution.
Key concerns
- Revenue declined 5.3% QoQ sequentially, indicating possible order-book lumpiness or seasonality – needs monitoring.
- Finance cost doubled YoY (₹0.13 Cr vs ₹0.07 Cr) though still negligible.
Research and educational content only. Not investment advice.