Vintage Coffee Q2 FY27 Results (NSE: VINCOFE)
Signal: Margin expansion
The read
The trajectory remains growth-led but the key inflection is the 200bps YoY gross-margin expansion to 25.9% after a recent history of broadly stable-to-improving operating margins; revenue grew 64.4% and EBITDA 78.3%, while capex of ₹9,934.81 lakh and net debt of ₹7,413.53 lakh show that the next phase is increasingly balance-sheet funded. Comparability remains impaired because the amalgamation was effective from 1 October 2025 and the September 2025 figures were not restated.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹222.97 Cr | +64.4% | +38.5% |
| EBIT | ₹37.97 Cr | +91.8% | |
| Net profit | ₹28.06 Cr | +57.4% | |
| EPS | ₹1.92 | +56.1% | |
| EBIT margin | 18.9% |
P&L walk
Revenue increased to ₹22,297.49 lakh, +64.4% YoY and +38.5% QoQ; gross margin expanded 200bps YoY to 25.9% as raw-material cost fell to 74.1% of revenue, while EBITDA rose 78.3% to ₹4,214.34 lakh and PAT grew 57.4% to ₹2,805.76 lakh.
Key positives
- Revenue reached ₹22,297.49 lakh, +64.4% YoY and +38.5% QoQ, reaccelerating from ₹16,099.78 lakh in the prior quarter.
- Gross margin expanded 200bps YoY to 25.9% as raw-material cost declined to 74.1% of revenue from 76.1%.
- EBITDA increased 78.3% YoY to ₹4,214.34 lakh, outpacing revenue growth of 64.4%, and EBITDA margin improved to 18.9%.
- Operating cash flow turned positive at ₹5,116.37 lakh in H1FY27 versus negative ₹2,395.74 lakh in H1FY26.
Key concerns
- Net debt increased to ₹7,413.53 lakh from ₹3,757.08 lakh at 31 March 2026 as ₹9,934.81 lakh was invested in PPE, CWIP and capital-goods advances.
- Finance cost increased 48.6% YoY to ₹235.98 lakh, raising the sensitivity of earnings to the capex and borrowing cycle.
- Raw-material tailwind is not attributed by management in the filing, so the 200bps gross-margin expansion remains unconfirmed as structural.
- The filing states that September 2025 comparatives were not restated after amalgamation, limiting the reliability of reported YoY growth rates.
Research and educational content only. Not investment advice.