Mamata Machinery Q1FY27 Revenue Down 6% Amidst Customer Working Capital Issues
Mamata Machinery reported a 6% year-on-year decline in Revenue from Operations for Q1FY27, amounting to ₹3,628 Lakhs. This decrease is attributed to slower execution as customers deferred machine deliveries due to working capital pressures stemming from polymer price escalation. Despite this, order intake and business visibility remained healthy, with a strong order backlog from FY26. Gross margins showed improvement YoY and QoQ. However, increased Other Expenses (exhibitions) and Employee Benefit Expenses impacted EBITDA. The company's recyclable film technology, RecTech, received EU certification. Management expressed cautious optimism for FY27, anticipating execution to improve later in the year.
Key Highlights
- Q1FY27 revenue declined 6% YoY to ₹3,628 Lakhs due to deferred deliveries.
- Healthy order intake and backlog persist despite near-term execution challenges.
- Gross margins improved, but EBITDA was pressured by higher operating expenses.
- RecTech technology achieved EU recyclability certification.
- Company anticipates execution pickup in the latter half of FY27.
Price Impact
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