Megastar Foods Q1 FY27 Results (NSE: MEGASTAR)
Signal: Growth reaccelerated
The read
The growth trajectory remains positive, with revenue up 23.5% YoY and PAT up 38.3%, but the margin arc has inflected negatively after four consecutive quarters of YoY OPM expansion: EBITDA margin fell 72bps YoY to 5.60% as raw-material cost rose 981bps of revenue, while lower finance cost and ₹21.70 lakh of other income cushioned PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹132.57 Cr | +23.5% | -9.2% |
| EBIT | ₹5.13 Cr | +11.6% | |
| Net profit | ₹2.23 Cr | +38.3% | |
| EPS | ₹1.98 | +23.8% | |
| EBIT margin | 5.60% |
P&L walk
Consolidated revenue increased 23.5% YoY, but gross margin fell 253bps to 12.03% as raw material cost rose to 81.94% of revenue from 72.13%; EBITDA margin consequently declined 72bps to 5.60%, while PAT rose 38.3% helped by lower finance cost and higher other income.
Segments
The company reports a single wheat-products segment; the subsidiary contributed only ₹0.03 lakh of revenue and a ₹0.40 lakh net loss, leaving consolidated PAT ₹10.00 lakh below standalone PAT.
Key positives
- Revenue from operations rose 23.5% YoY to ₹13257.08 lakh.
- Finance costs declined 6.2% YoY to ₹233.97 lakh.
- Employee benefits plus other expenses grew only 3.4% YoY against 23.5% revenue growth.
Key concerns
- Gross margin fell 253bps YoY to 12.03% as raw-material cost reached 81.94% of revenue.
- EBITDA margin fell 72bps YoY to 5.60% after four consecutive quarters of YoY expansion.
- EPS growth of 23.8% lagged PAT growth of 38.3%.
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