Mishtann Foods Q1 FY27 Results (BSE: 539594)
Signal: Revenue declined
The read
The key inflection is a sequential operating-margin recovery to approximately 6.37% from 1.98% in Q4FY26, but the thesis remains dominated by a 95.3% YoY revenue collapse, gross-margin compression to 8.08% from 35.15%, PAT of only 48.89 lakh, and unresolved audit, receivables, regulatory and going-concern risks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹18.32 Cr | -95.3% | -40.7% |
| Net profit | ₹0.49 Cr | -99.4% | |
| EPS | ₹0 | -100.0% | |
| EBIT margin | 6.37% |
P&L walk
Consolidated revenue collapsed to 1,831.65 lakh, down 95.3% YoY and 40.7% QoQ; gross margin compressed to 8.08% from 35.15% a year ago, while EBITDA margin improved sequentially to 6.37% from 1.93% but remained 1531bps below the prior-year 21.71%.
Segments
The company reports a single business segment; the material divergence is historical group scale, with consolidated revenue of 38,605.37 lakh a year ago versus standalone revenue of 7,078.91 lakh, while current-quarter consolidated revenue was only 1,828.95 lakh and nearly matched the parent.
Key positives
- Consolidated EBITDA margin recovered to approximately 6.37% from approximately 1.93% in the preceding quarter, a sequential improvement of approximately 444bps.
- Finance cost declined 32.4% YoY to 32.77 lakh, partially cushioning the sharp operating deterioration.
- Standalone gross margin improved to 8.08% from approximately 4.17% a year ago as material cost fell from 95.83% to 91.92% of revenue.
Key concerns
- Consolidated revenue fell 95.3% YoY to 1,831.65 lakh from 38,608.81 lakh, with no volume or pricing explanation disclosed.
- Consolidated gross margin compressed 2707bps YoY to 8.08% as raw-material cost rose to 91.92% of revenue from 64.85%; driver not disclosed.
- Consolidated PAT fell 99.4% YoY to 48.89 lakh and EPS declined to ₹0.00 from ₹0.77.
- Trade receivables of 59,370.57 lakh represented approximately 97% of total assets, and no ECL provision was recorded.
- The auditor highlighted SEBI allegations that a substantial portion of historical sales and purchases were fictitious and alleged misutilisation of rights issue proceeds amounting to 4,990.00 lakh.
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