Mrs Bectors Q2 FY27 Results (NSE: BECTORFOOD)
Signal: Steady quarter
The read
The trajectory is improving: Q2FY27 revenue growth accelerated to 14.3% YoY from 7.7% in Q1FY26, while EBITDA margin expanded 52bps YoY to 13.1% for the fourth consecutive quarter; the principal driver was a 210bps gross-margin tailwind from lower materials intensity, with consolidated growth still below the open FY27 target of 17-19%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹630.54 Cr | +14.3% | +14.9% |
| Net profit | ₹45.74 Cr | +25.3% | |
| EPS | ₹1.49 | +25.2% | |
| EBIT margin | 13.1% |
P&L walk
Consolidated revenue rose 14.3% YoY to ₹6,305.35 million, gross margin expanded 210bps to 46.3% as materials cost fell to 50.8% of revenue, and EBITDA grew 19.1% to ₹825.36 million; PAT growth of 25.3% to ₹457.37 million was helped by operating improvement and higher other income.
Segments
The group reports only one operating segment, Food Products; standalone revenue grew 16.5% YoY versus consolidated growth of 14.3%, implying subsidiaries and the associate diluted the parent's growth, although no segment-level split is disclosed.
Key positives
- Consolidated revenue reached ₹6,305.35 million, up 14.3% YoY and 14.9% QoQ, an acceleration from the 7.7% YoY growth recorded in Q1FY26.
- Gross margin expanded 210bps YoY to 46.3% as cost of materials fell to 50.8% of revenue from 53.7%; this is the fourth consecutive quarter of reported operating-margin improvement.
- EBITDA rose 19.1% YoY to ₹825.36 million and EBITDA margin expanded 52bps to 13.1%, while finance costs were almost flat YoY at ₹33.18 million.
- Operating cash flow remained positive at ₹1,009.18 million and the group ended with net cash of ₹1,251.82 million.
Key concerns
- Consolidated revenue growth of 14.3% remains below the open FY27 guidance range of 17-19%, requiring further acceleration in the second half.
- Consolidated EBITDA margin of 13.1% remains 90bps below the open Q4FY27 target of 14%.
- Employee benefits and other expenses rose 19.8% YoY to ₹2,090.68 million, faster than revenue growth, so the margin improvement currently depends primarily on materials-cost tailwinds.
- Subsidiary and associate performance diluted parent-company growth: standalone revenue rose 16.5% YoY versus 14.3% for consolidated revenue, while the associate reported a ₹0.11 million quarterly loss.
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