Pakka swings to ₹5.9 Cr consolidated profit as revenue jumps 43% YoY, margins expand

Pakka Limited (Yash Pakka) reported consolidated Q1 FY27 revenue of ₹117.19 Cr, up 42.9% YoY from ₹81.97 Cr, with consolidated PAT of ₹5.89 Cr versus a net loss of ₹1.53 Cr in Q1 FY26 — a clean year-on-year turnaround. Standalone PAT was ₹6.26 Cr, up 28.9% YoY on revenue of ₹117.19 Cr (+42.5%). The two bases converge on the topline but diverge on the bottom line: standalone was already profitable a year ago, while the consolidated number was dragged into a loss by the overseas subsidiaries (Pakka Inc./Guatemala) — a >3% divergence in YoY earnings trajectory, so readers comparing the two numbers should note standalone was never in the red even as consolidated posted a loss last year. Consolidated is the primary basis per our convention. Margins expanded on both counts: operating margin (EBITDA/revenue) rose to roughly 13.1% from about 7.2% a year ago and 8.9% in the immediately preceding quarter (Q4 FY26), while net margin turned positive at ~4.9% versus -1.8% YoY. The Paper & Pulp segment drove this, with segment PBT of ₹10.64 Cr versus ₹1.43 Cr a year ago, even as Moulded Products stayed loss-making (segment PBT of -₹1.62 Cr versus -₹0.61 Cr YoY). Part of the weak year-ago base reflects a plant shutdown from 16 June to 26 July 2025 tied to the Project Jagriti capacity expansion, which weighed on Q1 FY26 volumes and costs. No formal management guidance for this quarter is on record in our database, and a web search for brokerage previews or consensus estimates for Pakka's Q1 FY27 turned up no quantified figures either — vsGuidance and vsStreet are both marked unknown rather than assumed. On the financing side, the company raised ₹425 Cr via secured NCDs and ₹51.10 Cr via a preferential issue of equity and warrants (25%, or ₹21.18 Cr, received upfront) during the quarter, funding the ongoing Jagriti expansion — our event records separately show an initial ₹50 Cr NCD tranche allotted on 25 June, consistent with a larger multi-tranche raise. Consolidated capital work-in-progress stood at ₹586.69 Cr as of the 31 March 2026 year-end audited balance sheet, up from ₹158.90 Cr a year earlier, tracking that capex build (no fresher balance sheet accompanies this Q1 filing). Separately, ₹24.48 Cr of October-2024 vintage convertible warrants lapsed unexercised during the quarter, and the CFO title was vacated — the FY26 annual results and this Q1 filing are signed by a "Finance Head" rather than a CFO, consistent with our records of a CFO resignation effective 30 June 2026. The unresolved item to watch is the Guatemala subsidiary's CWIP of ~₹31.79 Cr, which auditors again flagged as "not ascertainable" pending resumption financing; the board separately approved a fresh USD 1 million outlay on 14 August to restart Pakka Inc. USA and support the Guatemala unit. No management press release was available to cross-check the company's own framing of the quarter. The scheduled 18 August investor call is the next checkpoint for commentary on margin sustainability and the funding path for the paused overseas project.