Post-it notes and Scotch tape manufacturer 3M India reported a 19 per cent year-on-year increase in sales in the first quarter of FY27. However, profitability came under pressure as higher costs, rupee depreciation, and a sharp decline in its transportation and electronics segment’s profit weighed on margins.
Sales and other operating income rose to ₹1,423 crore in the quarter, from ₹1,196 crore a year earlier. All four business segments — safety and industrial, transportation and electronics, healthcare, and consumer — recorded a year-on-year revenue growth, with healthcare leading the pack with a 23.5 per cent increase. While the safety and industrial vertical grew 23 per cent, transportation and electronics and consumer segments saw 13-14 per cent growth.
The strong top line performance, however, did not translate into a higher underlying profitability. EBITDA declined 2.7 per cent year-on-year to ₹250 crore, while profit before tax, excluding exceptional items, fell 4.3 per cent to ₹229 crore. On a sequential basis, PBT before exceptional items declined 8 per cent.
The reported profit numbers were boosted by an exceptional gain of ₹73.13 crore arising from a land sale. Consequently, PBT after exceptional items rose 26.2 per cent y-o-y to ₹302 crore, while PAT increased 31.2 per cent to ₹233 crore. Without the exceptional gain, the underlying profit performance was considerably weaker.
The pressure on margins was particularly visible in the transportation and electronics business. Despite a revenue growth, the profit fell sharply to ₹67.72 crore from ₹89.98 crore in the year-ago quarter.
Finance costs also increased to ₹3.98 crore. 3M India’s Managing Director, Aseem Joshi, said profitability excluding exceptional items declined primarily due to the impact of rupee depreciation and the impact of the new labour code.
Published on August 14, 2026
