3M India Limited Earnings Summary — Q1 FY2027
3M India Reports 19% Revenue Growth and Record PAT Driven by Land Sale Gain
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹1,423 Cr is 19.0% higher year-on-year.
- Revenue has compounded at 15.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹233 Cr is 31.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 20.2% annualised across the period.
- Operating margin stands at 16.7% in Q1 FY2027.
- Operating margin compressed by 348 bps year-on-year.
- Over the last two years operating margin has contracted by 290 bps.
- PBT margin is 21.2%.
- Expenses grew 24.2% against revenue growth of 19.0%.
- Operating profit of ₹238 Cr is 1.5% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 64/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,423 | 1,399 | 1,228 | 1,266 | 1,196 | 1,198 | 1,090 | 1,111 | 1,047 | 1,033 |
| Expenses | Improving | 1,185 | 1,142 | 997 | 1,011 | 954 | 971 | 936 | 927 | 841 | 831 |
| Operating Profit | Improving | 238 | 257 | 231 | 256 | 242 | 227 | 154 | 183 | 205 | 202 |
| Operating Margin | Stable | 16.7% | 18.4% | 18.8% | 20.2% | 20.2% | 18.9% | 14.1% | 16.5% | 19.6% | 19.5% |
| Other Income | Volatile | 85 | 52 | -65 | 12 | 15 | 14 | 17 | 18 | 22 | 27 |
| Interest | Volatile | 4 | 4 | 35 | 2 | 2 | 1 | 3 | 4 | 3 | 1 |
| Depreciation | Improving | 17 | 17 | 16 | 15 | 15 | 14 | 14 | 14 | 14 | 13 |
| Profit Before Tax | Volatile | 302 | 289 | 115 | 251 | 239 | 225 | 154 | 183 | 211 | 215 |
| Tax | Volatile | 69 | 74 | 177 | 59 | 62 | 154 | 40 | 49 | 54 | 54 |
| Net Profit | Volatile | 233 | 215 | -62 | 191 | 178 | 71 | 114 | 134 | 157 | 161 |
| Net Margin | Volatile | 16.4% | 15.4% | -5.0% | 15.1% | 14.9% | 6.0% | 10.4% | 12.0% | 15.0% | 15.6% |
Key Takeaways
- Revenue growth was broad-based with the fifth consecutive quarter of double-digit YoY growth, led by Health Care (23.5%) and Safety & Industrial (23.0%).
- Reported PAT surged 31.2% YoY, significantly aided by a net exceptional gain of ₹73.13 crores from the sale of land in Pimpri, Pune.
- Core profitability (PBT excluding exceptional items) actually declined 4.3% YoY to ₹229.03 crores, primarily due to Indian Rupee depreciation impacts.
- Total expenses rose 24.1% YoY, outpacing revenue growth, driven by higher cost of materials and employee benefit expenses.
- The Transportation & Electronics segment remained the largest revenue contributor at ₹503.36 crores, showing 14.4% YoY growth.
- The company maintains a strong balance sheet with zero debt and robust liquidity, despite foreign exchange volatility affecting margins.
Management Guidance
Management is encouraged by the sustained double-digit sales growth and attributes success to investments in sales, marketing, and innovation excellence. They noted that the underlying profitability was impacted by currency depreciation but remain focused on disciplined execution and customer focus.
Sentiment Shift
Improving
While underlying margins faced FX pressure, the company demonstrated exceptional top-line momentum across all segments and realized significant value from non-core asset sales.
Outlook
The company expects continued traction from its local R&D initiatives and 'Indianized' global products, though it remains watchful of currency volatility and commodity price spikes.
From the Annual Report (Key Quotes)
“This is our 5th consecutive quarter of double-digit YoY sales growth.”
“The company’s profitability excluding the exceptional items declined YoY primarily due to the impact of Indian Rupee depreciation.”
“These results also reflect traction from the sales and marketing investments the Company has been making.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from 3M India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.