Epigral's Profit Slump Masks a Sequential Recovery
The chemicals maker posted strong year-on-year revenue growth, but profit fell sharply as margins compressed from last year's highs.
Epigral's Q1 FY27 revenue grew 16.3% year-on-year to ₹705 crore, but profit fell 37.9% due to a significant margin squeeze. Sequentially, profit rebounded 23.2%.
Epigral's first-quarter results for FY27 present a mixed picture, with robust revenue growth overshadowed by a sharp year-on-year decline in profitability. While sales climbed, the company's net profit margin contracted significantly compared to the same period last year, highlighting ongoing pressure.
The quarter saw revenue rise 16.3% year-on-year to ₹705.36 crore. However, profit after tax (PAT) fell 37.9% to ₹99.74 crore. This divergence points to a substantial squeeze on net profit margins, which fell by 1,240 basis points to 14.1% from 26.5% in Q1 FY26. The story improves sequentially: compared to the March 2026 quarter, profit rebounded by 23.2% even as revenue dipped 4.2%, indicating some recovery in operational performance from the previous quarter.
A look at the last five quarters shows the volatility in the company's earnings trajectory.
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) | 705.36YoY +16% | 736.16 | 606.54 |
| Profit (₹ Cr) | 99.74YoY -38% | 80.95 | 160.69 |
| Net Profit Margin (%) | 14.1YoY -47% | 11.0 | 26.5 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 10.3%, with TTM profit at ₹271.02 crore.
- The stock has declined 41.7% over the past year, trading at a P/E of 10.5, a significant discount to the industry average of 38.9.
- The company maintains a conservative balance sheet with a debt-to-equity ratio of 0.25 and a return on equity (ROE) of 16.09%.
The sequential profit improvement is a positive step, but restoring margins closer to historical levels remains the key challenge for Epigral in the coming quarters.
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· EPIGRAL
(BSE)
ISIN: INE071N01016
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