Tasty Bite Eat. Q1 FY27 Results (NSE: TASTYBITE)

12 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The key inflection is strong top-line recovery to ₹1,557.55 million, +28.6% YoY after the company-level fundamentals showed declining sales, but economics remain weaker: gross margin compressed 191bps to 38.6%, EBITDA grew only 4.4%, and 49.4% of PBT came from other income, leaving the quality of the operating recovery unproven.

P&L walk

Revenue increased to ₹1,557.55 million, +28.6% YoY and +32.4% QoQ, but gross margin fell to 38.6% from 40.5% as total material and inventory costs rose faster than sales; EBITDA margin was 13.3% and PAT rose 7.9%, with other income equal to 49.4% of PBT.

Key positives

• Revenue from operations reached ₹1,557.55 million, +28.6% YoY and +32.4% QoQ, indicating a sharp sequential recovery.
• Raw material cost as a percentage of revenue fell to 64.6% from 70.0% YoY, while revenue grew 28.6% versus cost of materials growth of 18.6%, suggesting some pass-through despite gross-margin compression.
• Finance costs declined 22.4% YoY to ₹9.66 million, reducing pressure below EBITDA.
• EPS rose 8.0% YoY to ₹34.45 and tracked PAT growth of 7.9%.

Key concerns

• Gross margin declined approximately 191bps YoY to 38.6%, with total material and inventory costs rising to ₹957.17 million from ₹721.11 million; the filing does not disclose the cause.
• EBITDA grew only 4.4% YoY to ₹20.66 crore against 28.6% revenue growth, indicating weak conversion of sales growth into operating profit.
• Employee benefits plus other expenses increased 35.8% YoY to ₹452.59 million, faster than revenue growth of 28.6%.
• PAT growth of 7.9% was far below revenue growth and was materially influenced by other income of ₹58.85 million, equal to 49.4% of PBT.

Earnings quality: includes non-operating other income

View original filing

Research and educational content only. Not investment advice.