GM Breweries Q2 FY27: PAT +13% YoY to Rs39.3 Cr, margin slips despite 20% revenue growth

GM Breweries' standalone and consolidated Q2 FY27 results were identical this quarter — the wholly owned subsidiary Buildfort Infradev Private Limited had no profit-and-loss impact, only minor balance-sheet entries — so the consolidated PAT of Rs39.29 Cr is also the standalone number. Reported revenue from operations (inclusive of excise duty and VAT, per the filing's own convention) was Rs860.62 Cr, up 19.9% YoY from Rs717.85 Cr and 7.2% QoQ from Rs802.90 Cr. On the net-of-duty basis more commonly used in street coverage (revenue minus the Rs647.10 Cr excise/VAT/TCS pass-through), net revenue was Rs213.52 Cr, up 18.3% YoY from Rs180.52 Cr. PAT grew 12.6% YoY to Rs39.29 Cr (Rs34.89 Cr) and 4.1% QoQ (Rs37.74 Cr); EPS rose to Rs17.20 from Rs15.27 a year ago. Profit growth trailed revenue growth, and the net margin compressed to 4.54% of total income from 4.84% a year ago and 4.67% last quarter — a continuing multi-quarter softening. The squeeze shows up mainly in the 'Other Expenditure' line, which jumped 63% YoY to Rs13.27 Cr (from Rs8.14 Cr), while cost of materials consumed rose 17.9% YoY to Rs146.56 Cr, a shade below revenue growth. The pass-through excise/VAT/TCS cost rose 20.4% YoY to Rs647.10 Cr, broadly tracking the volume/pricing-led topline. No exceptional items were recorded in either the current or year-ago quarter, so the YoY comparison needs no adjustment. The effective tax rate was 25.2% (Rs13.22 Cr tax on Rs52.51 Cr PBT), in line with prior quarters. Management gives no formal guidance and there is no prior concall on record, so vsGuidance is not assessable from our data; a web search for independent Q2 FY27 consensus returned only last year's Q2 FY26 coverage, not fresh estimates for this print, so no external street figure could be confirmed. Against our own pre-result preview — which flagged a consolidated PAT range of Rs35-42 Cr — the actual Rs39.29 Cr print lands comfortably inside the band, in line with expectations. The preview's revenue expectation (Rs340-360 Cr) does not reconcile cleanly with either the gross (Rs860.62 Cr) or net-of-duty (Rs213.52 Cr) revenue conventions used in the filing and by brokers respectively, so that leg of the preview cannot be graded with confidence. The two watch items flagged pre-result — the trading-window closure and the board meeting — played out exactly as scheduled, with results declared on time on October 8; there were no other material corporate developments this quarter per our records. No management press release accompanied this filing, so there is no company framing to reconcile against the numbers. H1 FY27 PAT stands at Rs77.03 Cr (+26.8% YoY) on H1 revenue of Rs1,663.52 Cr (+22.8% YoY), so the first half still shows strong absolute growth even as the quarterly margin trend softens sequentially. The company remains debt-free, with total financial indebtedness reported as nil.