Wardwizard Foods Q1 FY27 Results (BSE: 539132)
Signal: Loss reversed
The read
The operating inflection is real at the PBT level—₹113.54 lakh versus a ₹169.91 lakh loss YoY—because Food Commodities and Services were profitable and gross margin expanded 397bps to 23.05%; however, the RTE segment still lost ₹194.04 lakh, other income of ₹62.14 lakh and a ₹17.38 lakh deferred-tax credit materially supported PAT, and the 79.93% asset increase alongside 6.49% lower depreciation weakens earnings quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17.03 Cr | +29.05% | -57.90% |
| Net profit | ₹1.31 Cr | Turned positive from a loss of ₹169.51 lakh | |
| EPS | ₹0.05 | Turned positive from a loss of ₹0.07 | |
| EBIT margin | 16.25% |
P&L walk
Revenue increased 29.05% YoY but fell 57.90% QoQ; gross margin expanded to 23.05% from 19.08% as raw-material and trading costs fell to 76.95% of revenue, while PAT turned positive at ₹130.93 lakh despite ₹62.14 lakh of other income and a ₹17.38 lakh deferred-tax credit.
Segments
Food Commodities generated ₹1,390.30 lakh of revenue and ₹28.71 lakh of segment profit, while Services contributed ₹298.81 lakh and ₹51.79 lakh of profit; the RTE/Frozen/Sauces & Mayo segment remained the major drag with a ₹194.04 lakh loss on ₹14.09 lakh of revenue.
Key positives
- Revenue reached ₹1,703.19 lakh, +29.05% YoY, despite a sequential decline from ₹4,045.10 lakh.
- Gross margin expanded 397bps YoY to 23.05% as raw-material and trading costs declined to 76.95% of revenue from 80.92%; the filing does not disclose the driver.
- Food Commodities turned profitable at ₹28.71 lakh versus ₹13.11 lakh YoY, while Services delivered ₹51.79 lakh versus ₹170.81 lakh YoY.
- Employee expense fell 31.24% YoY to ₹36.27 lakh while revenue grew 29.05%, reducing employee-cost intensity to 2.13% from 4.00%.
Key concerns
- The RTE/Frozen/Sauces & Mayo segment remained deeply loss-making at ₹194.04 lakh on only ₹14.09 lakh of revenue, versus a ₹184.54 lakh loss YoY.
- PAT of ₹130.93 lakh was supported by ₹62.14 lakh of other income and a ₹17.38 lakh deferred-tax credit, so reported profit quality is weaker than the headline turnaround suggests.
- Revenue fell 57.90% QoQ from ₹4,045.10 lakh and PAT fell 56.19% QoQ from ₹298.87 lakh, indicating substantial sequential volatility.
- Segment assets rose 79.93% YoY to ₹21,522.37 lakh while depreciation declined 6.49% YoY to ₹110.45 lakh.
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