Digjam's Q1 Sales Surge Masks a Sharp Profit Squeeze
The textile firm's revenue nearly doubled year-on-year, but profit fell and net margins contracted sharply, highlighting cost pressures.
Digjam reported an 88.9% jump in Q1 revenue, yet profit declined 14.6% year-on-year. The net profit margin fell by over 13 percentage points, indicating significant margin pressure.
Digjam's first-quarter results for FY27 present a mixed picture. While the legacy textile manufacturer's revenue nearly doubled compared to the same period last year, its profitability weakened significantly, pointing to substantial margin pressure.
The company's revenue for the quarter ended June 2026 stood at ₹7.46 crore, a strong 88.9% increase year-on-year. However, profit after tax (PAT) declined by 14.6% to ₹0.82 crore. This divergence caused the net profit margin to contract sharply, falling by 13.3 percentage points to 11.0%, down from 24.3% in Q1 FY26. Sequentially, performance was also weak, with both revenue and profit declining from the March 2026 quarter.
A look at the recent quarterly trajectory shows volatile performance.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 7.46YoY +89% | 8.21 | 3.95 |
| Profit (₹ Cr) | 0.82YoY -15% | -0.73 | 0.96 |
| Net Profit Margin (%) | 11.0YoY -55% | -8.9 | 24.3 |
The trailing twelve-month (TTM) figures underscore the challenge, with a cumulative net loss of ₹1.14 crore on TTM revenue of ₹36.78 crore, resulting in a negative TTM net profit margin of -3.1%.
Key Points
- The stock has declined 14.3% over the past year, underperforming the broader market.
- The company's balance sheet shows a high debt-to-equity ratio of 3.21 and a weak interest coverage ratio.
- Earnings per share (EPS) on a TTM basis stands at -₹6.03.
While the top-line growth is a positive signal for demand, the sharp erosion in profitability suggests that cost management will be critical for Digjam to return to sustainable earnings in the coming quarters.
Live Chart
· DIGJAMLMTD
(BSE)
ISIN: INE731U01028
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