Indo National makes a corporate announcement

Q1 FY27 is the latest reported quarter, but a segment-level EBIT margin for either “Electricals” or the legacy “Batteries” business is not reported in the cited quarterly figures. The disclosure shown gives consolidated and standalone revenue, expenses and profit, rather than EBIT by segment. ^[1]

Therefore:

• Electricals EBIT margin: Not separately disclosed for Q1 FY27.
• Batteries EBIT margin: Not separately disclosed for Q1 FY27.
• Comparison: Cannot be quantified on a like-for-like basis from the reported figures.

The available KPI data reports only consolidated EBIT of negative Rs 7.82 Crores on consolidated revenue of Rs 106.31 Crores in Q3 FY26, equivalent to a derived consolidated EBIT margin of negative 7.36%; this is not a segment margin and is not the latest quarter. ^{[2] [3]}

There was no increase in balance-sheet inventory on a consolidated basis. FY26 inventories were Rs 61.06 Crores, versus Rs 117.20 Crores in FY25—a decline of Rs 56.14 Crores, or 47.90%. ^{[4] [5] [6]}

The separate “Purchases of Stock-in-Trade” line did increase, but this is an income-statement flow rather than the closing balance-sheet inventory:

• FY25: Rs 130.59 Crores ^[7]
• FY26: Rs 147.42 Crores ^[8]
• Derived increase: Rs 16.83 Crores, or 12.89%

Attribution between new product categories and the core battery business is not separately disclosed. Accordingly, no defensible quantum can be assigned to either category. The only firm conclusion is that higher stock-in-trade purchases during FY26 did not translate into a higher year-end consolidated inventory balance; closing inventory fell materially.

The current advertising and sales-promotion ratio cannot be quantified reliably from the reported data. Advertising and sales-promotion expenditure is not separately reported, and the historical three-year advertising ratio is also unavailable.

• The latest reported consolidated quarter, Q4 FY26, had revenue of Rs 107.12 Crores ^[3].
• “Other Expenses” were Rs 39.36 Crores in Q4 FY26 ^[9], but this is an aggregated line and should not be treated as advertising or sales promotion. Dividing it by revenue would produce a derived ratio of 36.72%, but that would be an other-expenses-to-revenue ratio, not a brand-building spend ratio.
• The company’s diversified portfolio spans batteries, torches, LED products, mosquito bats, electrical accessories and razor blades, with further home-care expansion described in external company information ^[10]. However, that product breadth does not establish the level or trend of advertising investment.

Implication: It is not possible to conclude whether current brand-building spending is above or below the historical three-year average, or whether it is contributing to recent margin pressure. A valid comparison requires advertising and sales-promotion expense for the current period and each of the preceding three fiscal years, on the same consolidated basis, calculated as:

`advertising and sales-promotion expense / revenue × 100`