Vishnu Chemicals Q1 FY27 Results (NSE: VISHNU)
Signal: Margin expansion
The read
Vishnu Chemicals delivered a strong Q1FY27 with 24.9% YoY revenue growth and 210bps EBITDA margin expansion, marking the 3rd consecutive quarter of margin improvement. The operating leverage story is intact — employee and depreciation costs grew well below revenue. However, a spike in finance costs (+43.5% YoY) and heavy reliance on other income (23.4% of PBT) temper the quality of earnings. Sequential revenue and PAT declined modestly, typical of Q1 seasonality. Overall, a solid start to FY27 with the margin trajectory turning positive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹433.41 Cr | 24.9% | -3.75% |
| EBIT | ₹67.2 Cr | 33.7% | |
| Net profit | ₹39.64 Cr | 23.0% | |
| EPS | ₹5.89 | 23.0% | |
| EBIT margin | 18.1% |
P&L walk
Revenue grew 24.9% YoY to ₹433 Cr, with domestic ₹192.7 Cr (+2.2% YoY) and overseas ₹239.4 Cr (+52.0% YoY). EBITDA margin expanded 210bps YoY to 18.1% on operating leverage — employee cost grew +20% and depreciation +10.6%, both slower than revenue. Finance costs surged 43.5% YoY, partly offsetting. Gross margin contracted ~80bps YoY to 44.8%. PAT grew 23% YoY to ₹39.6 Cr, with other income contributing 23.4% of PBT.
Key positives
- Revenue growth of 24.9% YoY, highest in recent quarters on strong overseas demand (+52% YoY).
- EBITDA margin expanded 210bps YoY to 18.1% – 3rd consecutive quarter of expansion.
- Operating leverage evident: employee cost +20%, depreciation +10.6% vs revenue +24.9%.
- PAT grew 23% YoY to ₹39.6 Cr; Standalone PAT surged 76.9% YoY.
- Auditors issued unmodified opinion on both standalone and consolidated results.
Key concerns
- Finance costs jumped 43.5% YoY and 148.8% QoQ, outpacing revenue growth.
- Other income constituted 23.4% of consolidated PBT, indicating dependence on non-operating income.
- Gross margin contracted ~80bps YoY and ~198bps QoQ, suggesting input cost pressure.
- Sequential revenue declined 3.75% and PAT 7.8% due to seasonal weakness.
- One Indian subsidiary and step-down subsidiary were not reviewed by the auditor; contribution not material but adds uncertainty.
Earnings quality: includes non-operating other income
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