Hindustan Foods Q1 FY27 Results (NSE: HNDFDS)
Signal: Steady quarter
The read
Q1FY27 consolidated revenue of ₹1,201 Cr (+17.9% YoY) and PAT of ₹42.76 Cr (+32.8% YoY) extended the growth trajectory, with EBITDA margin expanding 58bps YoY to 8.85% — the third consecutive quarter of YoY margin improvement (Q3FY26: 9%, Q4FY26: 9%, Q1FY27: 8.85%). Gross margin slipped 11bps and manufacturing costs grew far faster than revenue, partly due to the Ultra Beauty facility. Post-quarter, Silvassa flooding (insured) may impact near-term output. EPS growth of 30.7% was modestly diluted by share issuance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,201.08 Cr | 17.9% | 7.6% |
| EBIT | ₹80.07 Cr | 26.8% | |
| Net profit | ₹42.76 Cr | 32.8% | |
| EPS | ₹3.53 | 30.7% | |
| EBIT margin | 8.8% |
P&L walk
Revenue growth of 17.9% YoY was driven by contract manufacturing volumes including contribution from the Ultra Beauty acquisition; EBITDA margin expanded 58bps YoY to 8.85% as employee costs grew slower than revenue and operating leverage partly offset higher raw material costs.
Key positives
- Revenue grew 17.9% YoY to ₹1,201 Cr, with PAT growth of 32.8% outpacing revenue.
- EBITDA margin expanded 58bps YoY to 8.85%, third consecutive quarter of YoY improvement.
- EPS grew 30.7% despite equity dilution from the Avalon scheme share issuance.
Key concerns
- Gross margin contracted 11bps YoY as raw material cost increased to 80.3% of revenue from 78.4%.
- Manufacturing costs surged 35.3% YoY, outpacing revenue growth, partly from the new Aurangabad facility.
- Subsidiaries contributed only ~₹2 Cr net profit on ~₹266 Cr revenue, indicating low margins or losses in those entities.
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