Cheviot Posts Strong Q1 Rebound with Record Profit Margins
The jute goods maker reported a powerful year-on-year recovery, with profit surging 57.7% and net profit margin expanding to a robust 26.6%.
Cheviot Company's Q1 FY27 results show a strong rebound from a weak prior quarter. Revenue grew 42.5% year-on-year, while profit jumped 57.7%, driving net profit margin to a multi-quarter high.
Cheviot Company has kicked off FY27 with a robust performance, delivering strong growth in both revenue and profit compared to last year. The results mark a decisive recovery from a loss-making previous quarter, with profitability reaching its highest level in recent periods.
Revenue for the quarter ended June 2026 came in at ₹170.55 crore, a 42.5% increase from the same period last year. Profit after tax surged even faster, rising 57.7% year-on-year to ₹45.29 crore. This translated into a net profit margin of 26.6%, a significant 260 basis point improvement from the 24.0% margin in Q1 FY26. The sequential comparison, however, tells a story of sharp recovery: the company swung from a loss of ₹9.05 crore in Q4 FY26 to this quarter's substantial profit.
The recent trajectory highlights this volatility and recovery. The table below shows the last five quarters of performance.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 170.55YoY +42% | 140.61 | 119.72 |
| Profit (₹ Cr) | 45.29YoY +58% | -9.05 | 28.71 |
| Net Profit Margin (%) | 26.6YoY +11% | -6.4 | 24.0 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 11.4%, indicating the Q1 performance is a notable positive outlier.
- The company maintains a very strong balance sheet, with a minimal debt-to-equity ratio of 0.02 and a high interest coverage ratio of 232.
- Despite the strong earnings, the stock trades at a significant discount to its industry, with a P/E of 10.9 compared to the industry average of 53.9.
While quarterly profits have been uneven, this quarter's margin expansion suggests Cheviot is effectively converting its solid revenue growth into bottom-line strength. The key question is whether this level of profitability can be sustained in the coming quarters.
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· CHEVIOT
(BSE)
ISIN: INE974B01016
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