Pakka swings to ₹5.9 Cr consolidated profit as revenue jumps 43% YoY, margins expand
revenue +42.97% · margins expanding
₹117.19 Cr
+42.97% YoY
₹5.89 Cr
4.93%
+6.8pp YoY
₹1.29
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.
Q1 FY-2027 vs prior quarters
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.
The stock went into the print at ₹73.86, up 4.2% over the past month of trading.
What the summary numbers don't show
Guatemala subsidiary CWIP of ~₹31.79 Cr still carries a qualified/emphasis-of-matter audit finding on recoverability
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.
W1
Guatemala CWIP (~₹31.79 Cr) recoverability — auditors call it 'not ascertainable' pending financing; watch for resolution once funding clarity emerges
W2
Margin sustainability — OPM at ~13.1% this quarter vs ~7-9% in the trailing two quarters; watch whether the expansion holds as Jagriti capacity ramps
W3
Utilisation of the ₹425 Cr NCD + ₹51.10 Cr preferential proceeds toward Jagriti capex, and commissioning timeline for the expansion
Both statements are Unaudited, limited-reviewed; consolidated review carries a qualified conclusion (and standalone an unmodified Emphasis of Matter) on recoverability of ~₹31.79 Cr CWIP at the Guatemala step-down subsidiary, same issue that qualified the FY26 annual audit (₹31.98 Cr). No Q1-end balance sheet was provided in this filing; only the 31-Mar-2026 audited B/S is available.