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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.Profit under pressureThe 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