Mangalam Global Q1 FY27 Results (NSE: MGEL)
Signal: Growth decelerated
The read
Revenue growth is solely from foreign operations (+136% YoY); domestic agri sales flat. EBITDA and PAT growth YoY aided by margin expansion and other income, but QoQ figures plunged due to seasonality and higher costs. The Agri Retail segment remains a loss-making drag with no near-term profitability. Other income constitutes a material 25% of PBT, and an exceptional item contributed 4.7%, inflating reported profit above operating performance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹952.07 Cr | 10.9% | -71.9% |
| EBIT | ₹20.38 Cr | 26.5% | |
| Net profit | ₹8.43 Cr | 31.1% | |
| EPS | ₹0.26 | 30.0% | |
| EBIT margin | 2.2% |
P&L walk
Revenue grew 10.9% YoY to ₹952 Cr, but materials cost + purchases + inventory change drove COGS to 96.6% of revenue, leaving a thin gross margin of 3.44%. EBITDA margin improved 27bps YoY to 2.2% as other opex grew slower than revenue. Depreciation (+30.5% YoY) remained benign. Finance cost jumped 30% YoY to ₹9.94 Cr, partly offset by other income of ₹2.75 Cr (25.1% of PBT). PAT growth of 31.1% YoY was aided by other income and a low tax rate (23.1%); excluding other income and exceptional items, core operating profit (EBIT) grew 26.5%.
Segments
Core Agri Products (domestic + foreign) drives profitability with segment result of ₹23.1 Cr; foreign ops revenue surged 136% YoY to ₹153.9 Cr with ₹1.0 Cr profit. Agri Retail & FMCG continues to incur losses (₹2.06 Cr loss on ₹1.42 Cr revenue), worsening from ₹0.33 Cr loss in Q1FY26, indicating early-stage drag.
Key positives
- Foreign operations revenue grew 136% YoY to ₹153.9 Cr, contributing over 58% of total revenue growth.
- Consolidated EBITDA margin expanded 27bps YoY to 2.2%, driven by gross margin improvement (up 103bps YoY to 3.44%).
- PAT grew 31.1% YoY to ₹8.43 Cr, EPS up 30% to ₹0.26; return ratios remain healthy (ROCE 17%, ROE 14.6% per fundamentals).
Key concerns
- Revenue dropped 71.9% QoQ from Q4FY26 levels, indicating high seasonality/prone to lumpy quarters.
- Agri Retail & FMCG segment losses widened to ₹2.06 Cr (revenue only ₹1.42 Cr); the segment is still in investment phase with no turnaround visibility.
- Finance costs rose 30% YoY to ₹9.94 Cr, outpacing revenue growth and compressing net margin.
- Other income accounted for 25.1% of PBT; excluding it and exceptional items, core operating profit growth is lower.
Earnings quality: includes non-operating other income
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