Advance Agrolife Q2 FY27 Results (NSE: ADVANCE)
Signal: Steady quarter
The read
The trajectory has shifted from Q1FY27's 10.7% margin and 184.8% PAT growth to Q2FY27 gross-margin compression of 551bps and a 25.7% PAT decline; H1 revenue still grew 61.9% to ₹6175.58 million, but H1 PAT growth was only 12.4% to ₹234.00 million and H1 EPS fell 36.0% to ₹3.53, making input-cost recovery and margin normalisation the key next test.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹287.15 Cr | +35.1% | -13.1% |
| Net profit | ₹11.79 Cr | -25.7% | |
| EPS | ₹1.84 | -47.9% |
P&L walk
Standalone revenue increased 35.1% YoY to ₹2871.53 million but declined 13.1% QoQ; gross margin compressed 551bps to 17.7% as raw material cost rose to 82.3% of revenue, while PAT declined 25.7% YoY to ₹117.94 million.
Key positives
- H1 revenue increased 61.9% YoY to ₹6175.58 million, extending the company's high-growth trajectory despite Q2 sequential revenue declining 13.1%.
- Finance costs fell 83.8% YoY to ₹3.50 million, while the balance sheet moved from net debt of ₹20.93 million at March 31, 2026 to net cash of ₹61.88 million at September 30, 2026.
- PPE increased to ₹874.70 million and CWIP to ₹345.17 million, indicating continued investment in manufacturing capacity.
Key concerns
- Gross margin compressed 551bps YoY to 17.7% as raw material cost rose to 82.3% of revenue from 78.5%; the filing does not disclose whether the pressure was caused by input inflation, pricing, or mix.
- Operating expenses rose 54.7% YoY to ₹199.89 million, faster than revenue growth of 35.1%, while PAT declined 25.7% to ₹117.94 million.
- EPS declined 47.9% YoY to ₹1.84, materially worse than the 25.7% PAT decline because paid-up share capital rose to ₹642.86 million from ₹450.00 million.
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