FratelliVineyard Q1 FY27 Results (BSE: 541741)
Signal: Loss narrowed
The read
The trajectory improved from Q1FY26's ₹5.82 crore consolidated loss to a ₹366.51 lakh loss and EBITDA turned positive at ₹95 lakh, but this is an early and incomplete recovery: wine-segment PBIT remains negative at ₹193.78 lakh, finance cost is ₹352.09 lakh, and the prior-quarter margin recovery has not yet translated into consolidated profitability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹44.72 Cr | 22.5% | +26.6% |
| EBIT | ₹-1.44 Cr | 67.9% | |
| Net profit | ₹-3.67 Cr | 36.9% | |
| EPS | ₹-0.84 | 37.8% | |
| EBIT margin | 2.1% |
P&L walk
Revenue recovered to ₹4,471.51 lakh, +22.5% YoY and +26.6% QoQ, while gross margin expanded to 62.29% from 59.07% as raw-material cost fell to 24.96% of revenue from 34.91%; EBITDA turned positive at ₹95 lakh, but finance cost of ₹352.09 lakh kept PBT at a ₹495.98 lakh loss and PAT at a ₹366.51 lakh loss.
Segments
The wine manufacturing segment remains the drag at a ₹193.78 lakh loss despite a 62.8% YoY improvement, while the other reportable segment contributed only ₹0.26 lakh profit on ₹7.28 lakh revenue and cannot offset the group loss.
Key positives
- Consolidated revenue reached ₹4,471.51 lakh, +22.5% YoY and +26.6% QoQ, reversing the sharp revenue contraction seen through Q1FY26.
- Gross margin expanded 322bps YoY to 62.29% as raw-material cost fell to 24.96% of revenue from 34.91%; the filing does not disclose the specific cause.
- EBITDA turned positive at ₹95 lakh from a ₹222 lakh loss YoY, while wine-segment loss narrowed 62.8% YoY to ₹193.78 lakh.
Key concerns
- The core wine segment still reported a ₹193.78 lakh loss and consolidated EBIT remained negative at ₹143.89 lakh despite positive EBITDA.
- Finance cost of ₹352.09 lakh was 3.7 times EBITDA of ₹95 lakh, preventing the operating improvement from reaching PBT.
- PAT improvement to a ₹366.51 lakh loss was aided by a ₹129.47 lakh deferred-tax credit, so the loss reduction is larger than the pre-tax operating improvement.
- Standalone revenue was only ₹7.28 lakh, while standalone PAT of ₹13.17 lakh was driven by ₹29.18 lakh other income; group earnings, not standalone earnings, are the relevant shareholder measure.
Research and educational content only. Not investment advice.