Grauer & Weil net profit falls 8.7% in Q1FY27 on cost pressures
Grauer & Weil's Q1FY27 results show consolidated net profit falling 8.7% to ₹398.1 lakh and EBITDA margin contracting to 16.13%. Standalone revenue grew 18.3% to ₹2,949.7 lakh, but profitability was eroded by sharp increases in material and employee costs.
*this image is generated using AI for illustrative purposes only.
Grauer & Weil reported a contraction in profitability for the quarter ended June 30, 2026, as rising operational costs weighed heavily on margins despite robust top-line growth. The company’s consolidated net profit declined 8.7% year-on-year to ₹398.1 lakh, while standalone net profit fell 4.1% to ₹418.4 lakh. This performance highlights growing pressure on profitability even as standalone revenue from operations surged 18.3% to ₹2,949.7 lakh, signaling that cost inflation is currently outpacing sales volume expansion.
The Board of Directors approved the unaudited financial results on August 4, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, M/s M. M. Nissim & Co. LLP. The filing covers both standalone and consolidated figures prepared in accordance with Ind AS 34.
Financial Performance
Standalone revenue from operations grew significantly to ₹2,949.7 lakh, compared to ₹2,493.2 lakh in the corresponding period of the previous year. However, total expenses rose to ₹2,517.6 lakh from ₹2,035.9 lakh, driven primarily by a 9.3% increase in employee benefits expense to ₹342.7 lakh and a 38.6% jump in cost of materials consumed to ₹1,599.4 lakh. Consequently, profit before tax stood at ₹556.6 lakh, down from ₹584.4 lakh year-ago. After accounting for tax expenses of ₹138.2 lakh, including a provision for earlier years of ₹3.2 lakh, standalone net profit settled at ₹418.4 lakh. Basic earnings per share were ₹0.92, down from ₹0.96 in Q1FY25.
On a consolidated basis, revenue from operations increased 17.9% to ₹2,986.8 lakh. Total expenses rose to ₹2,575.3 lakh, leading to a profit before tax of ₹535.8 lakh. Consolidated net profit after tax was ₹398.1 lakh, with diluted earnings per share at ₹0.88. The key financial metrics are summarised below:
| Metric | Standalone Q1FY26 | Standalone Q1FY25 | Change (%) | Consolidated Q1FY26 | Consolidated Q1FY25 | Change (%) |
|---|---|---|---|---|---|---|
| Revenue from Operations (₹ Lakh) | 2,949.7 | 2,493.2 | +18.3% | 2,986.8 | 2,532.6 | +17.9% |
| EBITDA (₹ Lakh) | — | — | — | 482.00 | 526.00 | -8.37% |
| EBITDA Margin (%) | — | — | — | 16.13 | 20.76 | — |
| Profit Before Tax (₹ Lakh) | 556.6 | 584.4 | -4.80% | 535.8 | 584.0 | -8.25% |
| Net Profit (₹ Lakh) | 418.4 | 436.5 | -4.10% | 398.1 | 436.1 | -8.70% |
| EPS Basic (₹) | 0.92 | 0.96 | -4.17% | 0.88 | 0.96 | -8.33% |
Segment-wise Analysis
The Surface Finishings segment remained the primary revenue driver, contributing ₹2,689.1 lakh to standalone revenue, a 16.8% increase from ₹2,301.8 lakh in the year-ago period. This segment generated a profit before tax and interest of ₹623.3 lakh. The Engineering segment recorded stronger growth, with revenue rising 33.4% to ₹263.4 lakh, though its profitability contracted sharply to ₹11.6 lakh from ₹41.4 lakh year-ago. The Shoppertainment segment continued to operate at a loss, reporting a segment result of (₹32.9 lakh) against (₹41.7 lakh) in the corresponding period, reflecting a marginal improvement.
| Segment | Revenue Q1FY26 (₹ Lakh) | Revenue Q1FY25 (₹ Lakh) | Change (%) | Segment Profit/(Loss) Q1FY26 (₹ Lakh) |
|---|---|---|---|---|
| Surface Finishings | 2,689.1 | 2,301.8 | +16.80% | 623.3 |
| Engineering | 263.4 | 197.5 | +33.40% | 11.6 |
| Shoppertainment | — | — | — | (32.9) |
What the Numbers Show
A key divergence in the latest quarter is the decoupling of revenue growth from profitability. While standalone revenue surged nearly 18.3%, net profit declined and the consolidated EBITDA margin compressed significantly to 16.13% from 20.76% year-on-year. This margin compression is largely attributable to the disproportionate rise in cost of materials consumed (up 38.6%) and employee benefits (up 9.3%), which outpaced revenue growth. The Shoppertainment segment remains a drag on overall profitability, continuing to post losses despite a slight improvement in its segment result. The temporary suspension of mall operations, pursuant to a March 5, 2025 order by the Maharashtra Pollution Control Board, continues to impact this segment, with no provision made in the books pending Supreme Court adjudication.
Historical Stock Returns for Grauer & Weil
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.06% | 0.0% | -10.19% | 0.0% | 0.0% | +11.18% |
How does Grauer & Weil plan to mitigate the impact of the 38.6% surge in material costs, and are there plans to renegotiate supplier contracts or adjust pricing strategies?
What is the expected timeline for the resolution of the Maharashtra Pollution Control Board case, and how might a favorable Supreme Court ruling impact the Shoppertainment segment's profitability?
Given the sharp decline in the Engineering segment's profitability despite 33.4% revenue growth, will management review its operational efficiency or strategic positioning in future quarters?
18
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
