Financial Performance (Consolidated for Q1 FY27)
Revenue from Operations: ₹288 Crore, representing 6% year-on-year (YoY) growth from ₹268 Crore in Q1 FY26 and 8% quarter-on-quarter (QoQ) growth from ₹272 Crore in Q4 FY26.
Cost Structure:
- Cost of Goods Sold (COGS): ₹195 Crore (Q1 FY26: ₹182 Crore; Q4 FY26: ₹211 Crore)
- Gross Profit: ₹93 Crore, showing 52% YoY growth from ₹61 Crore
- Gross Margin: 32.2% (968 basis points improvement YoY from 22.5%)
- Operating Expenses: ₹75 Crore, increased 30% YoY from ₹58 Crore
Profitability Metrics:
- EBITDA: ₹21 Crore, surging 287% YoY from ₹5 Crore but declining 19% QoQ from ₹26 Crore
- EBITDA Margin: 7.3% (532 basis points improvement YoY from 2.0%, but 245 basis points decline QoQ from 9.8%)
- Finance Cost: ₹6 Crore, increased 12% YoY
- Depreciation: ₹5 Crore, increased 10% YoY
- Profit Before Tax: ₹9 Crore, showing 283% YoY growth from loss of ₹5 Crore but declining 36% QoQ from ₹15 Crore
- Profit After Tax: ₹7 Crore, showing 306% YoY growth from loss of ₹4 Crore but declining 33% QoQ from ₹11 Crore
- PAT Margin: 2.5% (386 basis points improvement YoY from -1.3%)
- Basic EPS: ₹2.78 (YoY: -₹1.52; QoQ: ₹4.44)
Other Income:
- Other Income: ₹2 Crore, increased 20% YoY from ₹1 Crore
- Share in Profit of Joint Venture: ₹2 Crore, increased 172% YoY from ₹1 Crore
Management Commentary
Priyam Mehta, Chairman and Managing Director, commented on the Q1FY27 performance:
Operational Context: The quarter experienced increased input prices due to general food inflation, higher energy costs, and resulting logistics cost inflation. Despite these challenges, the company maintained performance through healthy volumes and margins.
Pricing Strategy: The company achieved an average sales price increase of 3-4% during Q1FY27, with end product prices remaining buoyant across the industry. Management expects margins to remain healthy for the rest of the year.
Raw Material Procurement: Raw material availability remains comfortable, and while prices increased during Q1, the company remains comfortable with its procurement strategy for FY27.
Export Business: Logistics to the Middle East remain under pressure due to elevated freight costs and the ongoing West Asia crisis. The company is utilizing alternate shipping and logistics routes to maintain export continuity while focusing on alternate export markets including the United States, alongside healthy domestic market visibility.
Project Updates
Technology Modernisation and Automation Project:
- Progress: ~95% of machinery and material delivered
- Current Status: Installation in process
- Expected Commissioning: End of September 2026
- Expected Impact: Significant and sustainable cost savings once operational
Joint Venture Capex Projects:
1. Alland & Sayaji Gum Arabic Spray-Drying Plant #2:
- Expected Commencement: End of September 2026
- Civil Works Timeline: Expected to begin in Q3FY27 (due to ongoing monsoon season)
2. Nigay & Sayaji Caramel Colours Plant:
- Expected Timelines: Same as Gum Arabic plant (commencement by end-September 2026, civil works in Q3FY27)
Outlook
The Q1FY27 performance and ongoing projects position the company well for FY27. Management's focus remains on consolidating gains, completing current projects, and building a stronger, more competitive operating platform.