Aries Agro Q1 FY27 Results (NSE: ARIES)
Signal: Margin expansion
The read
The key inflection is the return from Q4FY26's consolidated PAT loss of ₹478.78 lakh to Q1FY27 PAT of ₹1491.49 lakh, while EBITDA margin recovered to 14.6% from 0.17% QoQ; however, the business remains highly seasonal and the 16.3% YoY revenue growth was below the 18.9% achieved in Q3FY26.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹185.86 Cr | 16.3% | 3.7% |
| EBIT | ₹24.45 Cr | 26.5% | |
| Net profit | ₹14.91 Cr | 48.7% | |
| EPS | ₹11.47 | 48.8% | |
| EBIT margin | 14.6% |
P&L walk
Consolidated revenue rose 16.3% YoY to ₹18585.77 lakh, EBITDA grew faster at 24.3% to ₹2711 lakh and PAT expanded 48.7% to ₹1491.49 lakh, with the recovery supported by lower trading and selling-cost intensity versus the year-ago quarter.
Key positives
- Consolidated EBITDA increased 24.3% YoY to ₹2711 lakh versus 16.3% revenue growth, expanding EBITDA margin by 106bps to 14.6%.
- Consolidated PAT rose 48.7% YoY to ₹1491.49 lakh, and standalone PAT rose 48.5% to ₹1362.07 lakh, showing that the recovery was not dependent solely on subsidiaries.
- Selling and distribution expense declined to 14.5% of consolidated revenue from 15.6% in the year-ago quarter, supporting margin recovery.
- EPS increased 48.8% YoY to ₹11.47, closely tracking the 48.7% PAT increase.
Key concerns
- Revenue growth of 16.3% YoY decelerated from 18.9% in Q3FY26, while the filing cautions that quarterly results are not representative because of cropping patterns, seasonality and erratic weather.
- Finance costs increased 43.0% QoQ to ₹482.63 lakh despite being flat YoY, creating a sequential drag on the operating recovery.
- Materials and rebranded-goods consumption rose to 26.6% of revenue from 23.4% YoY, although lower traded-product intensity kept gross margin broadly stable.
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