G M Breweries Q1 FY27 Results (NSE: GMBREW)
Signal: Steady quarter
The read
The standalone financials show a dramatic but likely mis-scaled revenue figure of ₹802.9 Cr for Q1FY27, with an extreme QoQ decline of -73% from an implied prior quarter of ~₹2,974 Cr (vs actual Q4FY26 revenue of ₹202 Cr). Despite this, YoY growth of 25.8% in revenue and 45.9% in PAT suggests underlying business momentum, but the sequential numbers are unreliable. The company remains debt-free, with low finance costs and clean earnings quality. The subsidiary is yet to commence operations, so no consolidation impact.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹802.9 Cr | 25.8% | -73.0% |
| EBIT | ₹50.5 Cr | 45.0% | |
| Net profit | ₹37.74 Cr | 45.9% | |
| EPS | ₹16.52 | 45.9% | |
| EBIT margin | 6.5% |
P&L walk
Consolidated P&L is identical to standalone as the subsidiary has no operations; PAT reported as ₹0 in XBRL parse but filing shows ₹37.74 Cr – presumed a parse error.
Key positives
- Revenue grew 25.8% YoY, PAT grew 45.9% YoY.
- EBITDA grew 44.3% YoY, outpacing revenue growth, indicating margin expansion.
- Debt-free balance sheet with negligible finance cost; D/E 0.
- Earnings quality clean – other income only 6.9% of PBT.
Key concerns
- Revenue of ₹802.9 Cr is inconsistent with prior quarter of ₹202 Cr; extreme QoQ volatility suggests possible reporting unit error.
- PAT declined 75.9% QoQ, reflecting the same anomaly.
- EBITDA margin of 6.5% is low relative to historical OPM of 25%+; likely affected by the revenue scaling issue.
- Single-segment concentration (country liquor) with no diversification.
Research and educational content only. Not investment advice.