Bannari Amman Q1FY27: PAT triples on tax credit, underlying PBT falls 65% YoY
PAT +200.53% YoY · revenue -0.41% · margins compressing
₹216.51 Cr
-0.41% YoY
₹13.69 Cr
+200.53% YoY
6.28%
+4.2pp YoY
₹1.71
Bannari Amman Spinning Mills posted consolidated Q1 FY27 (quarter ended 30.6.2026) revenue of ₹216.51 Cr, down 0.41% YoY and 1.90% QoQ, with reported PAT of ₹13.69 Cr — up ~200% YoY (roughly 3x ₹4.56 Cr a year ago) and up sharply from a near-breakeven ₹1.38 Cr in Q4 FY26. Standalone tells the same story: PAT ₹13.82 Cr, EPS ₹1.73 versus consolidated EPS ₹1.71 — the two bases diverge by under 1%, so consolidated is used as primary.
Q1 FY-2027 vs prior quarters
The reported PAT growth is not an operating story. Consolidated PBT actually fell 65.5% YoY, to ₹2.34 Cr from ₹6.77 Cr, and 25.9% QoQ from ₹3.16 Cr. The entire gap between the PBT decline and the PAT surge is an ₹11.36 Cr deferred-tax credit booked this quarter after the company adopted the new income-tax regime and recomputed its opening deferred-tax liability accordingly (Note 5/6 to both statements) — a one-off, not a recurring benefit. Normalising the current quarter's PBT at last year's ~29% effective tax rate instead of the actual credit gives an adjusted PAT of roughly ₹1.66 Cr, i.e. an adjusted YoY decline of about 65% — the opposite signal to the +200% headline. EBITDA margin (PBT adjusted for other income, finance costs and depreciation) compressed to 8.67% from 10.51% a year ago and from 9.26% in Q4 FY26, as cost of materials consumed rose to 67.4% of revenue from 63.7% a year ago, pointing to input-cost pressure as the operating drag.
The stock went into the print at ₹27.28, up 10.4% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters.
No consensus estimates or brokerage previews for this quarter turned up in a web search, and neither our records nor the filing carry any prior management guidance or outlook, so vs-street and vs-guidance are both unknown — this is a thinly covered micro-cap. No separate management press release or commentary accompanied the filing beyond the statutory statements and notes. On the balance sheet, the Tranche I convertible-warrant conversion option (42,25,806 warrants) was forfeited this quarter for non-payment of the balance subscription, with ₹6.55 Cr of forfeited application money moved to capital reserve — unrelated to operating performance but a real capital-structure event this quarter. Separately, the AGM is scheduled for August 10, 2026 with a ₹0.25/share dividend and a July 15, 2026 record date, a routine capital-return item layered on top of this result.
W1
Cost of materials ratio (67.4% of revenue this quarter, up from 63.7% YoY) — watch whether input costs ease in H2 FY27.
W2
Effective tax rate reversion: this quarter's tax was a one-off ₹11.36 Cr credit from the regime switch; watch whether Q2 FY27 tax reverts toward the prior ~29% effective rate, which would pull PAT back toward the PBT-implied run-rate.
W3
Status of the SIPCOT, Perundurai land still classified as held-for-sale/discontinued operations, following the Palladam garment unit disposal completed in FY26.
Clean digitally-typeset filing, both statements reconcile exactly. Consolidated PAT>standalone gap is nil (subsidiary Bannari Infotech negligible). Deferred tax credit (Note 5/6, both bases) is a one-off from adopting the new tax regime (Sec 200 IT Act 2025) — it is the entire reason reported PAT rose while PBT fell. Our DB's 'previous quarter' comparison figures (revenue ₹870.32 Cr, PAT ₹13.75 Cr) match this filing's FULL-YEAR FY26 column, not the Q4 FY26 quarterly column (₹220.71 Cr / ₹1.38 Cr) — used the PDF's own Q4 FY26 column for QoQ instead of the mislabeled DB figure.