La Opala Q1 FY27: PAT up just 3% YoY as margins compress despite 9% revenue growth
PAT +3.33% YoY · revenue +9.33% · margins compressing
₹71.36 Cr
+9.33% YoY
₹26.2 Cr
+3.33% YoY
30.81%
-1.1pp YoY
₹2.36
La Opala RG's standalone revenue from operations rose 9.3% YoY to ₹71.36 Cr (₹65.27 Cr in Q1 FY26), but net profit grew only 3.3% YoY to ₹26.20 Cr (₹25.35 Cr), with EPS up marginally to ₹2.36 from ₹2.28. Profit growth trailing revenue growth by a wide margin is the story of the quarter, not the sequential jump — PAT was up 62% quarter-on-quarter from ₹16.17 Cr in Q4 FY26, but that comparison is a seasonality artifact: Q1 (Apr-Jun) is the peak summer season for glass and glassware sales, and Q4 is structurally the weakest quarter for this business, so the QoQ swing should not be read as a trend.
Q1 FY-2027 vs prior quarters
The compression sits mainly on the cost line rather than pricing: net profit margin (PAT/total income) slipped to 30.80% from 31.89% a year ago, and operating margin (EBITDA/revenue) eased to 36.33% from 36.97%. Power and fuel costs — a meaningful input for a glass manufacturer — rose 14.1% YoY to ₹15.56 Cr from ₹13.63 Cr, outpacing the 9.3% revenue growth and the single largest driver of expense growth. Depreciation also rose 7.3% YoY to ₹5.35 Cr on the expanding asset base, partially offset by a 24.7% drop in finance costs to ₹0.90 Cr. The effective tax rate ticked up slightly to 21.5% from 21.25% a year ago, a modest additional drag on the bottom line.
The stock went into the print at ₹189, up 3.8% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters.
What the summary numbers don't show
Margins compressed YoY — NPM 30.80% vs 31.89%, OPM 36.33% vs 36.97%
We have no prior guidance or concall commentary on record for this company, and a web search turned up no quarter-specific Street estimates for Q1 FY27 either — coverage on La Opala is thin, with only a full-year FY27 consensus EPS estimate of ₹9.30 (up from FY26's ₹8.70) available, against which this quarter's ₹2.36 (about 25% of the full-year estimate) is broadly in line with typical seasonal skew toward Q1, though this is an indirect read, not a hard estimate comparison. Management's press release commentary was not available in the extraction context. Separately, and unrelated to this quarter's operating print, the Board also recommended a ₹5/share dividend for FY26 (record date August 20, 2026), filed the FY26 annual report and BRSR, and set the 39th AGM for August 27, 2026 — all concurrent corporate actions rather than drivers of the Q1 FY27 numbers.
W1
Whether power and fuel cost inflation (+14.1% YoY this quarter) persists into Q2 FY27 and keeps pressuring OPM below the ~37% year-ago level
W2
Sequential normalization from the seasonally strong Q1 — watch whether Q2/Q3 revenue and PAT moderate as historically typical for this business
W3
Effective tax rate trend (21.5% this quarter vs 21.25% a year ago) for further creep
Standalone-only filing (single entity, one reportable segment per Ind AS 108 — no consolidated statement exists). Table header labels the 30-Jun-2026 and 30-Jun-2025 quarter columns 'Audited' but the covering letter and auditor's report confirm these are Limited-Review unaudited figures. No exceptional items in either the current or year-ago quarter (FY26's ₹1.79 Cr exceptional item sits only in the full-year column), so raw and adjusted YoY are identical.