Hindustan Foods Q2 FY27 Results (NSE: HNDFDS)
Signal: Steady quarter
The read
The key inflection is operating margin recovery: implied EBITDA margin rose to 8.84% from 8.19% YoY after remaining flat in Q1FY27, while revenue growth moderated to 18.1% from 20.7% in Q3FY25 and 17.9% in Q1FY27. The improvement was supported by a 132bps reduction in material-cost intensity, but higher finance costs of ₹26.37 Cr, up 31.2% YoY, and weaker H1 operating cash flow of ₹57.72 Cr remain constraints on the expansion-led trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,266.01 Cr | +18.1% | +5.4% |
| Net profit | ₹45.02 Cr | +18.1% | |
| EPS | ₹3.71 | +17.8% | |
| EBIT margin | 8.84% |
P&L walk
Revenue increased to ₹1,266.01 Cr, while gross margin expanded to 22.03% and implied EBITDA margin to 8.84%; PAT rose to ₹45.02 Cr despite finance costs increasing 31.2% YoY to ₹26.37 Cr.
Segments
The Group operates as a single contract-manufacturing segment, so no segment-level driver or drag is disclosed; consolidated revenue rose 18.1% YoY to ₹1,266.01 Cr.
Key positives
- Revenue rose 18.1% YoY to ₹1,266.01 Cr and 5.4% QoQ, maintaining double-digit growth despite moderation from the prior quarter.
- Gross margin expanded 76bps YoY to 22.03% as material cost declined to 78.04% of revenue from 79.36%.
- Implied EBITDA margin recovered 65bps YoY to 8.84% after a flat margin in Q1FY27, marking a renewed margin improvement.
Key concerns
- Finance costs increased 31.2% YoY to ₹26.37 Cr, faster than the 18.1% revenue growth, while borrowings rose to ₹1,182.95 Cr from ₹1,050.04 Cr at March 31, 2026.
- H1 operating cash flow declined to ₹57.72 Cr from ₹109.48 Cr despite H1 PAT of ₹87.78 Cr, alongside inventory increasing to ₹1,150.45 Cr from ₹969.47 Cr.
- The filing does not disclose volume, realisation or product-mix data, limiting the ability to determine whether the 18.1% revenue growth was volume-led or price/mix-led.
Research and educational content only. Not investment advice.