Guj. Ambuja Exp Q1 FY27 Results (NSE: GAEL)
Signal: Margin expansion
The read
Revenue grew 23.5% YoY to ₹1,594 Cr, and EBITDA margin surged 720bps YoY to 17%, driving net profit up 172%. The margin expansion was driven by a sharp improvement in gross margin from ~25% to ~32%, likely due to favourable input costs and better product mix, with all segments profitable. This marks a second consecutive quarter of strong margin recovery after a period of compression.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,594.22 Cr | 23.5% | 8.7% |
| EBIT | ₹237.74 Cr | 160.9% | |
| Net profit | ₹176.77 Cr | 171.9% | |
| EPS | ₹3.85 | 171.1% | |
| EBIT margin | 17.0% |
P&L walk
Revenue grew 23.5% YoY driven by strong maize processing revenue (+36%). Gross margin expanded ~765bps on lower raw material costs, boosting EBITDA margin to 17% (vs 9.8% a year ago). Net profit surged 172% YoY, with all segments profitable.
Segments
Maize Processing Division drove performance with revenue up 36% YoY and segment result surging to ₹190.41 Cr (vs ₹37.28 Cr in Q1FY25); Other Agro Processing revenue grew 1.7% but segment result fell 19% YoY to ₹28.57 Cr. All segments remained profitable.
Key positives
- Revenue growth of 23.5% YoY to ₹1,594 Cr, led by Maize Processing (+36% YoY).
- Gross margin expanded 765bps YoY to 32.3% due to lower raw material costs (67.7% of revenue vs 75.4% a year ago).
- EBITDA margin surged 720bps YoY to 17%; EBITDA grew 114% YoY.
- Net profit up 172% YoY to ₹177 Cr, all segments profitable.
- Finance cost declined 55% YoY reflecting low debt (D/E 0.13).
- EPS ₹3.85 (+171% YoY), no dilution.
Key concerns
- Other Agro Processing segment profit declined 19% YoY despite revenue growth.
- Raw material cost remains high at 68% of revenue, though improved from 75% YoY.
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