Megastar Foods Q2 FY27 Results (NSE: MEGASTAR)
Signal: Revenue declined
The read
The trajectory has shifted from FY26's accelerating revenue and margin phase to slower Q2 momentum: revenue was ₹13267.08 lakh, -3.8% YoY and flat QoQ, while PAT fell 8.9% YoY to ₹252.93 lakh; H1 growth remains positive at 10.0% revenue and 19.2% PAT, but inventory expansion to ₹13075.25 lakh drove operating cash flow to -₹4921.02 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹132.67 Cr | -3.8% | +0.1% |
| Net profit | ₹2.53 Cr | -8.9% | |
| EPS | ₹2.25 | -8.9% | |
| EBIT margin | N/A |
P&L walk
Consolidated Q2 revenue was ₹13267.08 lakh, -3.8% YoY and broadly flat QoQ; PAT was ₹252.93 lakh, -8.9% YoY, while H1 PAT remained up 19.2% because Q1 was stronger.
Segments
The company reports a single wheat-products segment; the subsidiary does not materially affect group earnings, contributing only ₹0.03 lakh of H1 revenue and a ₹0.91 lakh loss.
Key positives
- H1FY27 revenue reached ₹26983.83 lakh, up 10.0% YoY, while H1 PAT rose 19.2% to ₹476.10 lakh despite a softer Q2.
- Q2 EPS of ₹2.25 tracked PAT growth exactly, with no dilution signal from the PAT-to-EPS cross-check.
- The subsidiary contributed only ₹0.03 lakh of H1 revenue and a ₹0.91 lakh loss, limiting consolidated complexity.
Key concerns
- Q2 revenue of ₹13267.08 lakh declined 3.8% YoY after the prior-year ₹13796.50 lakh base, signalling deceleration from the recent high-growth quarters.
- Q2 PAT fell 8.9% YoY to ₹252.93 lakh, despite revenue being broadly flat sequentially.
- Operating cash flow was negative at ₹4921.02 lakh in H1FY27 versus negative ₹2145.84 lakh in H1FY26, mainly because inventory increased to ₹13075.25 lakh from ₹5495.52 lakh.
- PPE declined to ₹14426.25 lakh while H1 depreciation rose 4.6% to ₹462.88 lakh, requiring monitoring of asset utilisation and depreciation intensity.
Research and educational content only. Not investment advice.