Lakhotia Polyesters revenue more than triples but PAT halves on cost spike
Q1 FY27 revenue jumps to ₹3.22 cr from ₹1.03 cr YoY and nil in prior quarter, but profit after tax falls to ₹45.42 lakh as material costs surge to ₹3.24 cr.
— 2 earlier stories on Lakhotia Polyesters (India) Ltd. →What's new
- Revenue from operations more than tripled YoY to ₹3.22 cr in Q1 FY27.
- PAT halved to ₹45.42 lakh as cost of materials consumed rose to ₹3.24 cr.
- Auditors gave an unmodified limited review report.
Why this matters
Lakhotia swung from nil sales in Q4 FY26 to ₹3.22 cr in Q1 FY27, a genuine topline revival. But the entire gross margin was consumed by material costs, leaving PAT sharply lower. For a ₹63 cr nano-cap, this quarter shows the business is alive but not yet delivering sustainable profits.
What we're watching
- Whether material cost pressure eases in coming quarters to restore margins.
- Sustained revenue run-rate above ₹3 cr to validate the recovery.
- Any further stake shuffles after last month's 5.93% non-promoter sale.
The full read
Lakhotia Polyesters posted ₹3.22 cr in Q1 FY27 revenue — more than tripled from ₹1.03 cr last year and a sharp reversal from the ₹0 cr reported in Q4 FY26. But the cost of materials consumed came in at ₹3.24 cr, leaving profit after tax at just ₹45.42 lakh, down from ₹97.84 lakh a year earlier. The auditors signed off with no qualifications. For a ₹63 cr nano-cap with a trailing ROE of 42% and debt/equity of 0.98, the revenue revival is the headline. The margin story is the risk. If material costs stay elevated, PAT will struggle to keep pace. A quarter of evidence is not a trend; the next few will show whether this is a sustainable comeback or a one-off splash.
Questions answered
- How did Lakhotia's revenue jump so sharply from the prior quarter?
- Q4 FY26 had zero sales and net profit. Q1 FY27 revenue of ₹3.22 cr marks a revival from a near-zero base, possibly reflecting new orders or restart of operations.
- Why did profit fall despite higher revenue?
- Cost of materials consumed rose to ₹3.24 cr, nearly swallowing all revenue. PAT dropped to ₹45.42 lakh from ₹97.84 lakh a year ago, showing margin compression.
- What is the company's financial health?
- Market cap is ₹63 cr, trailing P/E 26.5, ROE 42.3%, and debt/equity 0.98. The high ROE reflects thin equity base, not necessarily sustainable earnings.
- Is there any governance concern?
- No. The statutory auditors issued an unmodified limited review report, and the board approved the results. Last month's 5.93% stake shuffle was among non-promoters, which is not unusual.
Lakhotia Polyesters (India) Ltd.
Latest quarter · Jun 2026
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All notes on LAKHOTIA →- 17 Jul 2026 · 4:02 PM IST Lakhotia Polyesters revenue more than triples but PAT halves on cost spike
- 11d ago Lakhotia Polyesters revenue jumps 3x but PAT halves on high material cost
- 36d ago Lakhotia Polyesters sees 5.93% stake shuffle among non-promoter group