Vimta Labs Q1 FY27 Results (NSE: VIMTALABS)
Signal: Margin expansion
The read
Steady Q1 with revenue ₹109.1 Cr (+11.8% YoY) and EBITDA margin of 37.7% (+140bps YoY); employee cost leverage offset gross margin pressure from rising material costs. PAT ₹21.0 Cr (+11.4% YoY) aided by higher other income. Growth decelerated from H2FY25's 20%+ pace, but margin expansion trend intact.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹109.07 Cr | 11.8% | -0.2% |
| EBIT | ₹28.58 Cr | 11.7% | |
| Net profit | ₹21.04 Cr | 11.4% | |
| EPS | ₹4.71 | 10.8% | |
| EBIT margin | 37.7% |
P&L walk
Revenue grew 11.8% YoY, but gross margin contracted 150bps as material costs outpaced revenue. Employee cost leverage (+150bps) drove EBITDA margin expansion of 140bps YoY to 37.7%. PAT rose 11.4% YoY, aided by higher other income.
Key positives
- EBITDA margin expanded 140bps YoY to 37.7%, driven by employee cost leverage (employee cost ratio improved 150bps YoY to 27.0%).
- Other income surged to ₹3.81 Cr from ₹1.75 Cr YoY, providing a cushion to PBT.
- Finance costs down 24.8% YoY, indicating debt reduction.
Key concerns
- Gross margin contracted 150bps YoY to 79.2% as material & testing costs rose 20.4% YoY, outpacing revenue growth of 11.8%.
- Revenue growth decelerated to 11.8% YoY from 20%+ in H2FY25, and QoQ revenue declined 0.2%.
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