Sundrop Brands Q2 FY27 Results (NSE: SUNDROP)
Signal: Loss reversed
The read
The key inflection is a gross-margin-led operating recovery: consolidated gross margin expanded to 44.0% from about 27.3% YoY and EBITDA margin to about 5.1% from 1.0%, reversing the ₹3.89 crore year-ago loss into ₹11.05 crore PAT; however, revenue growth decelerated to 20.7% from 95.7% in Q3FY26 and 15.1% in Q1FY27, while H1 operating cash flow was -₹48.63 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹463.09 Cr | +20.7% | +8.2% |
| Net profit | ₹11.05 Cr | N/M from ₹3.89 crore loss | |
| EPS | ₹2.94 | N/M from negative EPS | |
| EBIT margin | 5.1% |
P&L walk
Consolidated revenue increased to ₹463.09 crore, +20.7% YoY and +8.2% QoQ, while gross margin expanded to 44.0% from about 27.3% a year earlier; EBITDA margin rose to about 5.1% from 1.0%, turning PAT to ₹11.05 crore from a ₹3.89 crore loss.
Segments
The Group reports one Foods segment, which generated ₹463.09 crore of revenue and ₹15.23 crore of profit before tax; the consolidated result is materially larger than standalone revenue of ₹262.10 crore, but consolidated PAT of ₹11.05 crore is only ₹1.23 crore above standalone PAT of ₹9.82 crore.
Key positives
- Consolidated revenue reached ₹463.09 crore, +20.7% YoY and +8.2% QoQ, continuing growth despite deceleration from +95.7% in Q3FY26 and +15.1% in Q1FY27.
- Gross margin expanded to 44.0% from about 27.3% YoY, with cost of materials falling to 53.9% of revenue from 71.0%; the filing does not disclose the cause, so the durability of the tailwind remains unconfirmed.
- EBITDA margin improved to about 5.1% from 1.0% YoY, and PAT turned positive at ₹11.05 crore from a ₹3.89 crore loss.
- Standalone PAT was ₹9.82 crore, +718.3% YoY, showing that the parent—not only subsidiaries—accounted for the group recovery.
Key concerns
- H1 operating cash flow was -₹48.63 crore versus -₹10.24 crore, while consolidated receivables increased to ₹161.52 crore from ₹106.28 crore and inventories to ₹249.99 crore from ₹190.77 crore.
- Consolidated EBITDA margin moderated to about 5.1% from about 6.1% sequentially as revenue growth slowed to 20.7% YoY.
- The group had ₹44.00 crore of borrowings at September 2026 versus nil at March 2026, while cash and bank balances were ₹16.09 crore.
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