Mangalam Cement Q1 FY27: standalone PAT slumps 44% YoY as margins compress on flat revenue
PAT -43.98% YoY · revenue +0.77% · margins compressing
₹455.22 Cr
+0.77% YoY
₹18.07 Cr
-43.98% YoY
3.88%
-3.1pp YoY
₹6.57
Mangalam Cement's standalone Q1 FY27 (quarter ended June 30, 2026) revenue was ₹455.22 Cr, up just 0.77% YoY and down 7.18% QoQ. Net profit fell sharply to ₹18.07 Cr, down 43.98% YoY and 72.30% QoQ, with EPS at ₹6.57 versus ₹11.73 a year ago and ₹23.72 in Q4 FY26. Net profit margin contracted to 3.88% from 6.98% a year earlier (and versus 12.88% in Q4 FY26) — this is a profitability story, not a topline one, since revenue held roughly flat.
Q1 FY-2027 vs prior quarters
Total expenses rose 7.0% YoY to ₹442.18 Cr against near-flat revenue. The single biggest driver was the Change in Inventories of Finished Goods and Work-in-Progress line, which swung from -₹20.20 Cr in Q1 FY26 (an inventory build that reduced reported costs) to +₹34.57 Cr in Q1 FY27 (an inventory drawdown that added to costs) — an adverse swing of roughly ₹54.8 Cr. Finance costs rose 10.7% YoY to ₹18.27 Cr and depreciation rose 9.5% YoY to ₹22.07 Cr. Notably, cost of materials consumed fell 21.4% YoY and power & fuel fell 5.6% YoY, so the margin squeeze was largely a working-capital/inventory and finance-cost effect rather than input-cost inflation on materials or fuel.
The stock went into the print at ₹944.95, up 0.4% over the past month of trading.
The steeper QoQ profit decline needs a caveat: Q4 FY26's ₹65.23 Cr reported PAT was flattered by a one-off ₹58.40 Cr deferred-tax credit, even though that quarter's PBT (after a ₹20.73 Cr exceptional charge) was only ₹13.04 Cr — so the QoQ comparison overstates the sequential deterioration. Management gives no formal guidance on record, and no analyst consensus or street estimate specific to Mangalam Cement could be located for this quarter — small-cap cement names outside the JK Cement/JSW Cement/UltraTech tier get little dedicated coverage — so vsStreet is unknown. Sector-wide, brokerage previews flagged healthy Q1 FY27 cement volume growth (roughly 5-8% YoY) alongside margin pressure from rising petcoke costs; Mangalam's own revenue growth of under 1% YoY lagged that sector volume narrative even as it avoided the worst of the fuel-cost spike, since power & fuel costs actually declined YoY.
W1
Whether the 15.17 MW solar plant (commissioned Aug 6, 2026) visibly reduces power & fuel cost, which ran at ₹103.71 Cr (~22.8% of revenue) in Q1 FY27, in coming quarters.
W2
Whether the inventory-driven cost swing normalizes — watch the Change in Inventories line for a reversal back toward the Q1 FY26-style working-capital benefit.
W3
Trajectory of finance costs (₹18.27 Cr, +10.7% YoY) and depreciation (₹22.07 Cr, +9.5% YoY) as capex-related costs continue to ramp.