United Foodbrands Q1 FY27 Results (NSE: UFBL)
Signal: Loss reversed
The read
The key inflection is the return to positive consolidated owners' PAT of ₹30.93 million after a ₹164.09 million loss YoY, supported by revenue growth of 43.4% and EBITDA growth of 48.2%; however, food and beverage costs rose 51.8% and compressed gross margin by about 189bps, while subsidiaries reported losses that kept group earnings fragile.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹425.9 Cr | +43.4% | +18.2% |
| EBIT | ₹25.38 Cr | N/A | |
| Net profit | ₹3.09 Cr | Turnaround from -₹164.09 million | |
| EPS | ₹0.79 | Turnaround from -₹4.20 | |
| EBIT margin | 16.7% |
P&L walk
Consolidated revenue increased to ₹4,258.99 million, +43.4% YoY and +18.2% QoQ, while EBITDA rose +48.2% YoY to ₹710.95 million; however, gross margin compressed by about 189bps as food and beverage costs grew +51.8%, and subsidiary losses left owners' PAT at ₹30.93 million.
Segments
India remained the larger growth engine at ₹3,873.57 million of revenue, +43.1% YoY, while overseas revenue grew faster at ₹385.42 million, +46.6%; no segment profit is disclosed, and subsidiary losses caused consolidated owners' PAT of ₹30.93 million to trail standalone PAT of ₹61.32 million.
Key positives
- Consolidated revenue reached ₹4,258.99 million, +43.4% YoY and +18.2% QoQ, accelerating from +23.1% in Q4FY26 and +14.5% in Q3FY26.
- EBITDA rose 48.2% YoY to ₹710.95 million, ahead of revenue growth by 4.8 percentage points, while employee benefits grew only 19.3% to ₹870.14 million.
- Owners' PAT turned positive at ₹30.93 million from a ₹164.09 million loss YoY, and EPS improved from -₹4.20 to ₹0.79.
- Overseas revenue grew 46.6% YoY to ₹385.42 million, ahead of India revenue growth of 43.1%.
Key concerns
- Food and beverage cost increased 51.8% YoY to ₹1,456.69 million, faster than revenue growth of 43.4%, compressing gross margin by about 189bps; the filing gives no evidence of pricing or volume offset.
- Consolidated owners' PAT of ₹30.93 million was only half of standalone PAT of ₹61.32 million, reflecting continued drag from subsidiaries.
- Other expenses rose 50.3% YoY to ₹1,233.59 million, faster than revenue and offsetting part of the employee-cost benefit.
- Eight subsidiaries reported aggregate net loss after tax of ₹25.50 million and three additional unreviewed subsidiaries reported net loss of ₹11.43 million for the quarter.
Earnings quality: includes non-operating other income
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