Foods & Inns Q2 FY27 Results (NSE: FOODSIN)
Signal: Slipped to loss
The read
The quarter shows a volume-versus-value inflection: tonnage rose 4% and domestic tonnage 24.5%, but revenue fell 11.6% because exports were delayed and realizations fell 12%; gross margin expanded 583bps on cheaper raw materials, yet a ₹1,062 lakh forex loss turned operating improvement into a ₹495.57 lakh consolidated loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹170.23 Cr | -11.6% | +8.1% |
| Net profit | ₹-4.96 Cr | -837.5% | |
| EPS | ₹-0.67 | -844.4% | |
| EBIT margin | 6.1% |
P&L walk
Revenue fell to ₹17,023.02 lakh, -11.6% YoY but +8.1% QoQ, as export dispatches were disrupted despite 4% higher tonnage; gross margin expanded to 48.2% on lower raw-material costs, but a ₹1,062 lakh forex loss pushed PAT to a ₹495.57 lakh loss.
Segments
The company reports a single food-processing segment; the main divergence is consolidated PAT of negative ₹495.57 lakh versus standalone PAT of negative ₹427.36 lakh, reflecting subsidiary and joint-venture losses, including ₹35.06 lakh of joint-venture loss.
Key positives
- Sales tonnage increased 4% YoY to 21,594 MT even though consolidated revenue declined 11.6% to ₹17,023.02 lakh, indicating the primary weakness was realization and shipment timing rather than volume.
- Domestic tonnage rose 24.5% YoY to 15,176 MT, while frozen-food volume grew 11% and value grew 27%, evidencing value-added mix improvement in frozen products.
- Gross margin expanded 583bps YoY to 48.2% as the company processed inventory made with substantially lower raw-material costs.
- Spray-dried powder volumes grew 8% YoY and the plant was running at full capacity, with expanded capacity targeted for commercial production in January 2027.
Key concerns
- Export tonnage fell 24.9% YoY to 6,418 MT and approximately 3,300 MT of finished goods worth ₹3,200 lakh could not be shipped, creating execution and working-capital timing risk.
- Average realizations declined 12% YoY, so the 4% volume increase did not translate into revenue growth.
- A ₹1,062 lakh forex loss, including realized and unrealized losses, was the dominant reason consolidated PAT moved from a ₹67.20 lakh profit to a ₹495.57 lakh loss.
- Operating cash flow turned negative at ₹5,264.61 lakh in H1FY27 versus positive ₹5,534.14 lakh in H1FY26, alongside a ₹14,766.75 lakh inventory cash absorption.
- Standalone borrowings rose to ₹53,863.75 lakh from ₹41,108.53 lakh at 31-Mar-26, while finance costs increased 5.8% YoY to ₹1,339.60 lakh.
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