Advance Agrolife Q1 FY27 Results (NSE: ADVANCE)
Signal: Steady quarter
The read
The key inflection is a sharp volume or revenue recovery to ₹3304.04 million, +96.0% YoY, with PAT at ₹254.6 million, +184.8%; however, gross margin fell 220bps YoY to 19.6% as raw material cost increased to 80.9% of revenue, so sustaining growth will depend on pass-through or mix improvement rather than fixed-cost absorption alone.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹330.4 Cr | +96.0% | +166.8% |
| EBIT | ₹32.28 Cr | N/A | |
| Net profit | ₹25.46 Cr | +184.8% | |
| EPS | ₹3.5 | +76.0% | |
| EBIT margin | 10.7% |
P&L walk
Revenue increased to ₹3304.04 million, +96.0% YoY and +166.8% QoQ, but gross margin fell to 19.6% from 21.8% a year earlier as raw material costs rose to 80.9% of revenue; EBITDA margin was 10.7% and PAT rose to ₹254.6 million, while EPS growth lagged PAT growth because of the larger equity base.
Key positives
- Revenue from operations reached ₹3304.04 million, +96.0% YoY, versus ₹1686.10 million in Q1FY26.
- PAT increased 184.8% YoY to ₹254.6 million, while finance costs declined 3.6% YoY to ₹20.33 million.
- Employee benefits, manufacturing and operating expenses and other expenses grew only 1.0% YoY in aggregate versus 96.0% revenue growth, indicating strong operating cost absorption.
Key concerns
- Gross margin compressed 220bps YoY to 19.6% as raw material cost rose to 80.9% of revenue from 79.6%; the filing does not disclose the cause, indicating that margin recovery or pass-through remains unproven.
- EPS grew 76.0% YoY to ₹3.50, materially below 184.8% PAT growth because paid-up capital increased to ₹642.86 million from ₹450.00 million.
- The company identifies the business as seasonal and exposed to weather conditions and cropping patterns, making quarter-to-quarter revenue comparisons volatile.
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