Kothari Products Q1 FY27: consolidated PAT falls 65% YoY on trading margin squeeze
PAT -64.71% YoY · revenue +8.65% · margins compressing
₹269.89 Cr
+8.65% YoY
₹7.5 Cr
-64.71% YoY
2.59%
-5.2pp YoY
₹1.26
Kothari Products' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue rose 8.65% YoY to ₹269.89 Cr (₹248.41 Cr in Q1 FY26) but PAT fell 64.71% YoY to ₹7.50 Cr (₹21.25 Cr a year ago) — profit growth trailed revenue growth by a wide margin, so the quarter reads as weak on a YoY basis, the primary lens here. Sequentially the group swung from a ₹1.95 Cr loss in Q4 FY26 to this ₹7.50 Cr profit, but that recovery is off a weak base and secondary to the YoY trend.
Q1 FY-2027 vs prior quarters
The drag sits in the trading segment (the core pan-masala/tobacco-trading business): combined trading-segment profit (parent plus the Singapore subsidiary) collapsed 65.7% YoY to ₹6.56 Cr from ₹19.14 Cr, even as trading-segment revenue grew 6.8% YoY to ₹273.80 Cr — a clear margin squeeze rather than a volume problem. There is also a large revenue-mix shift behind the flat-looking consolidated topline: standalone (parent-only) revenue surged 169% YoY to ₹177.74 Cr, while the foreign subsidiary's revenue roughly halved to about ₹92.16 Cr this quarter (per the auditor's other-matters note) from an implied ~₹182 Cr a year ago — the two moves largely offset at the consolidated line. Compounding the operating pressure, the consolidated effective tax rate jumped to ~38.8% (₹4.76 Cr tax on ₹12.26 Cr PBT) from ~7.5% YoY. Partially cushioning the print, the group's share of profit from real-estate associate JVs swung to +₹7.41 Cr from a ₹0.49 Cr loss a year ago, and the real-estate segment result itself grew 6.3% YoY to ₹7.25 Cr.
The stock went into the print at ₹68.8, up 1.4% over the past month of trading.
Standalone (parent-only) numbers tell a materially different story: standalone PAT rose 154.6% YoY to ₹13.85 Cr on the 169% revenue jump — the weakness is entirely a consolidation/subsidiary and group-tax-rate story, not a parent-entity problem, and readers comparing the two figures should not assume either is wrong. No street estimates or brokerage previews were found for this stock (searched; none turned up), so vsStreet is unknown; management has issued no formal guidance on record either, so vsGuidance is unknown. The filing carries no separate press-release commentary beyond the regulatory disclosure and segment note, and this quarter's other listed developments — the board-meeting notice, non-promoter shareholding updates and insider-trading window closure — are procedural and don't bear on the print.
W1
Whether combined trading-segment profit recovers from the 65.7% YoY decline in Q2 FY27 as revenue growth continues.
W2
Whether the ~38.8% consolidated effective tax rate this quarter (vs ~7.5% a year ago) normalises or persists.
W3
Subsidiary (Kothari Products Singapore) revenue trajectory — down to ~₹92 Cr this quarter from an implied ~₹182 Cr a year ago — and whether it stabilises.
Both statements unaudited/limited-review; no exceptional items in current or year-ago quarter for either basis; consolidated PAT (₹7.50 Cr) is total-for-period, NCI this quarter is negligible ('<Rs 50000'); comparison-context figures match this total-for-period basis, not owners-only (₹7.50 Cr vs owners-attributable ₹7.50 Cr — identical since NCI ~nil).