Spice IslandsInd Q1 FY27 Results (BSE: 526827)
Signal: Growth decelerated
The read
The trajectory is a rapid revenue scale-up from ₹192.57 lakh to ₹1,783.05 lakh YoY, but economics weakened sharply: gross margin compressed 6,716bps to 17.8% as traded goods reached 82.0% of revenue, and PAT quality is weak because other income of ₹88.57 lakh equalled 63.1% of PBT; the key inflection to monitor is whether food-and-beverages growth can turn its ₹38.52 lakh segment loss into profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17.83 Cr | 823.8% | +63.6% |
| EBIT | ₹1.42 Cr | 317.6% | |
| Net profit | ₹1.4 Cr | 324.2% | |
| EPS | ₹2.24 | 190.9% | |
| EBIT margin | 8.1% |
P&L walk
Revenue increased to ₹1,783.05 lakh, +823.8% YoY and +63.6% QoQ, led by food and beverages, but gross margin compressed to 17.8% from 84.9% as traded-goods purchases became the dominant cost; EBITDA margin fell to 8.1%, while PAT growth was amplified by ₹88.57 lakh of other income.
Segments
Food and beverages drove the group’s revenue expansion at ₹1,485.86 lakh, +4,537.4% YoY, but remained loss-making at ₹38.52 lakh versus a ₹26.86 lakh loss, while hospitality generated ₹85.52 lakh of segment profit and EV rental generated ₹24.56 lakh.
Key positives
- Revenue from operations reached ₹1,783.05 lakh, +823.8% YoY and +63.6% QoQ, with food and beverages contributing ₹1,485.86 lakh.
- Hospitality remained profitable at ₹85.52 lakh of segment result, while EV rental generated ₹24.56 lakh versus a ₹2.93 lakh loss YoY.
- Employee expenses grew 61.6% YoY to ₹56.15 lakh, materially below revenue growth, supporting the sharp increase in reported EBITDA to ₹145 lakh, +302.8% YoY.
Key concerns
- Gross margin compressed to 17.8% from 84.9% YoY as purchase of traded goods increased to ₹1,461.93 lakh and 82.0% of revenue from ₹17.30 lakh and 9.0%.
- Food and beverages produced ₹1,485.86 lakh of revenue but a ₹38.52 lakh segment loss, showing that the largest growth engine has not yet demonstrated profitable unit economics.
- EBITDA margin fell to 8.1% from an implied 18.7% despite revenue growth of 823.8%, indicating that the revenue mix is currently dilutive to operating profitability.
Earnings quality: includes non-operating other income
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