Vraj Iron Q1 FY27 Results (NSE: VRAJ)
Signal: Margin expansion
The read
The key inflection is a YoY margin recovery after five consecutive quarters of reported OPM contraction: EBITDA margin improved to 11.1% from roughly 10% YoY and PAT rose 51.6%, but the sequential decline from 15% in Q4FY26 and the absence of disclosed volume, pricing or cost drivers leave the durability of the recovery unproven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹193.83 Cr | 40.1% | 13.9% |
| EBIT | ₹14 Cr | 39.6% | |
| Net profit | ₹11.51 Cr | 51.6% | |
| EPS | ₹3.49 | 51.7% | |
| EBIT margin | 11.1% |
P&L walk
Consolidated revenue increased to ₹1,938.29 million (+40.1% YoY, +13.9% QoQ), while EBITDA rose 40.6% and margin expanded to 11.1% YoY; PAT growth of 51.6% was helped by ₹17.82 million of associate profit, although EBITDA margin was below the 15% reported for Q4FY26.
Segments
The company reports one operating segment, so no segment-level momentum split is disclosed; the material consolidated uplift came from ₹17.82 million of associate profit versus ₹2.65 million YoY.
Key positives
- Revenue reached ₹1,938.29 million, up 40.1% YoY and 13.9% QoQ, indicating continued top-line momentum after ₹1,702.08 million in Q4FY26.
- Gross margin expanded approximately 190bps YoY to 23.1% as raw-material cost declined to 76.9% of revenue from 78.8%; the filing does not disclose whether this was input-cost or mix-led.
- Consolidated PAT rose 51.6% YoY to ₹115.12 million, with ₹17.82 million of associate profit versus ₹2.65 million YoY providing an additional earnings contribution.
Key concerns
- EBITDA margin declined sequentially to 11.1% from 15% in Q4FY26 despite revenue growth of 13.9% QoQ, so the Q4 margin rebound has not yet been sustained.
- Finance costs increased 312.0% YoY to ₹9.94 million, materially faster than revenue growth, although the absolute base remains small.
- The filing does not disclose steel volumes, realisations, capacity utilisation or the specific reason for gross-margin expansion, limiting confidence in the operating trajectory.
Research and educational content only. Not investment advice.