Venus Pipes Q1 FY27 Results (NSE: VENUSPIPES)
Signal: Steady quarter
The read
Q1FY27 retained positive revenue momentum at ₹3205.37 million, up 16.0% YoY, but the trajectory softened through the P&L: EBITDA grew 11.3% with a 16.9% margin and PAT grew 6.7%, while EPS rose only 5.2%; the key issue is conversion of growth into per-share earnings rather than demand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹320.54 Cr | 16.0% | 16.0% |
| EBIT | ₹46.99 Cr | 8.0% | |
| Net profit | ₹26.41 Cr | 6.7% | |
| EPS | ₹12.75 | 5.2% | |
| EBIT margin | 16.9% |
P&L walk
Revenue was ₹3205.37 million, up 16.0% YoY, but EBITDA grew 11.3% to ₹542.10 million and PAT grew only 6.7% to ₹264.08 million; the quarter shows continued demand momentum without equivalent bottom-line conversion.
Key positives
- Revenue reached ₹3205.37 million, up 16.0% YoY and 16.0% sequentially, maintaining the company's growth trajectory.
- EBITDA increased 11.3% YoY to ₹542.10 million and EBITDA margin expanded to 16.9%, an improvement of approximately 80bps YoY.
- Finance costs of ₹112.83 million grew 7.6% YoY, below the stated 16.0% revenue growth rate.
Key concerns
- Raw material consumption increased 18.4% YoY to ₹2320.58 million, reaching 72.4% of revenue versus 64.9% a year earlier, limiting EBITDA growth to 11.3% despite 16.0% revenue growth.
- PAT growth of 6.7% to ₹264.08 million trailed EBITDA growth of 11.3%, indicating weaker bottom-line conversion.
- EPS growth of 5.2% to ₹12.75 lagged PAT growth by 1.5 percentage points.
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