HMA Agro Inds. Q2 FY27 Results (NSE: HMAAGRO)
Signal: Growth decelerated
The read
The trajectory improved sharply from Q1FY27: consolidated revenue reached ₹27,794.81 million, +28.9% YoY and +31.7% QoQ, while PAT rose to ₹1,045.67 million, +16.5% YoY; however, negative H1 operating cash flow of ₹267.31 million, inventory of ₹16,785.28 million and finance costs up 118.9% YoY keep working-capital discipline central to the thesis.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,779.48 Cr | +28.9% | +31.7% |
| Net profit | ₹104.57 Cr | +16.5% | |
| EPS | ₹2.08 | +16.2% |
P&L walk
Consolidated revenue grew to ₹27,794.81 million, +28.9% YoY and +31.7% QoQ, while gross margin improved to 10.8% from 9.9% YoY and 8.3% QoQ; PAT rose to ₹1,045.67 million, +16.5% YoY, with higher finance costs and working-capital intensity limiting conversion.
Segments
The company reports a single buffalo frozen-meat and meat-products segment, but consolidated PAT of ₹1,045.67 million exceeded standalone PAT of ₹810.82 million by ₹234.85 million, indicating material earnings contribution from the wider group.
Key positives
- Consolidated revenue rose to ₹27,794.81 million, +28.9% YoY and +31.7% QoQ, reversing the weak ₹21,103.19 million Q1FY27 base.
- Consolidated PAT reached ₹1,045.67 million, +16.5% YoY and +107.0% QoQ, while EPS rose to ₹2.08, +16.2% YoY.
- Gross margin improved to 10.8% from 9.9% YoY and 8.3% QoQ, indicating sequential recovery despite raw-material volatility.
Key concerns
- Finance costs increased 118.9% YoY to ₹140.56 million as consolidated borrowings reached ₹10,831.16 million.
- H1 operating cash flow was negative at ₹267.31 million despite H1 PAT of ₹1,550.81 million, mainly alongside inventories of ₹16,785.28 million.
- Raw materials consumed were ₹27,350.21 million, equal to 98.4% of quarterly revenue, leaving profitability sensitive to procurement and inventory movements.
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