ADF Foods Q2 FY27 Results (NSE: ADFFOODS)
Signal: Margin pressure
The read
The trajectory has inflected from the recent Q1FY27 growth-and-margin recovery: consolidated revenue grew only 3.2% YoY to 16,778.89 lakh, EBITDA margin compressed 420bps to 17.7%, and PAT fell 34.5% to 1,728.37 lakh, while standalone revenue still grew 16.6% but standalone PAT declined 27.2%. The key issue is subsidiary drag and weaker other income, not dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹167.79 Cr | +3.2% | N/A |
| EBIT | ₹23.09 Cr | -35.1% | |
| Net profit | ₹17.28 Cr | -34.5% | |
| EPS | ₹1.57 | -34.6% | |
| EBIT margin | 17.7% |
P&L walk
Consolidated revenue reached 16,778.89 lakh, +3.2% YoY, but EBITDA margin contracted to 17.7% from roughly 21.9% as employee costs rose 35.9% and depreciation rose 26.6%; PAT fell 34.5% to 1,728.37 lakh, amplified by sharply lower other income of 109.57 lakh versus 583.47 lakh.
Segments
No segment results table was included in the supplied filing text; however, standalone PAT of 2,164.82 lakh exceeded consolidated PAT of 1,728.37 lakh, showing that overseas and other subsidiaries dragged group earnings by at least 436.45 lakh.
Key positives
- Standalone revenue grew 16.6% YoY to 16,327.32 lakh, materially ahead of consolidated growth of 3.2%.
- The asset base is expanding: consolidated property, plant and equipment increased by 1,495.80 lakh while CWIP declined by 1,025.21 lakh, consistent with capex moving into operating assets.
- Net cash remained positive at 4,221.67 lakh despite borrowings increasing to 3,023.28 lakh.
Key concerns
- Consolidated EBITDA margin fell 420bps YoY to 17.7%, reversing the recent margin expansion visible in the prior-results series.
- Consolidated PAT declined 34.5% to 1,728.37 lakh despite 3.2% revenue growth; the earnings decline was substantially sharper than the top-line slowdown.
- Employee benefits expense increased 35.9% YoY to 1,549.60 lakh, materially faster than consolidated revenue growth.
- Standalone PAT declined 27.2% to 2,164.82 lakh despite 16.6% revenue growth, indicating broad operating-cost pressure rather than only subsidiary weakness.
Research and educational content only. Not investment advice.