28% growth, Q2 margin pressure — execution risk remains

Delivered ₹341.6 Cr, YoY growth 28.1%, QoQ 10.8%

Delivered PAT ₹70.7 Cr exactly; NPM 20.2%, margin claim overstated 50 bps

EBITDA ₹84.4 Cr implied by 341.6 × 24.7% ≈ 84.4; OPM delivered 24.4%

Sequential decline QoQ acknowledged; YoY improvement credible (~51% implied Q1 FY26)

Within stated 15-16% historical operating zone

No contradiction; consistent with 28% revenue growth and ASP +29%

Management now expects Q2 margins under stress (61.8% in Q1 likely to compress further); previously implied mid-60s was sustainable

ADHO volume growth accelerated to low-teens (MLH-adjusted) vs prior mid-single-digit run-rate, driven by smaller unit price point traction

Exponential rebound after challenging FY26; Nepal & Bangladesh double-digit growth, MENA very strong, rest-of-world recovered from tariff disruptions

No significant one-offs; Q2 gross margins will remain tough, then sequentially ease Q3-Q4. EBITDA at high end of aspiration. Pricing not planned; operating leverage key. Dependent on top-line.

Traction in smaller unit price points is aiding momentum.

Coconut grew despite value deflation on selective pricing. Rationalizing discount vs leader to profitable level. Banjara's revamp underway — will be second-biggest leg of growth portfolio. Diversification is immediate agenda.

True for some commodities, flat for others. Very dynamic; copra cycle broken. Couple weeks ago war seemed over, now uncertain. Month-on-month management required.

Aspiration is low-to-mid 20s EBITDA. Business is dynamic; sometimes lower end, sometimes higher. No specific quarterly/yearly guidance. Some expenses naturally skew quarter-to-quarter, but we manage costs low and let operating leverage flow.

First-time execution in 4 big states. Aarohan is continuous exercise. One-time/first-time benefit this cycle, but multi-year benefit as we expand outlet reach and portfolio execution capability.

Nothing to disclose as of now.

Aarohan delivers ~200-300 bps one-time delta on mix change when executing. Overall strategy is indirect-to-high-impact direct distribution; multi-year benefit. Hard to segregate mix impact, but small mix contribution.

Will give annual disclosure. Comprises several small businesses fighting large competitors in sub-segments. Request patience on quarterly updates.

Long-term aspiration double-digit to low-teens. Current exponential results will ease as bases lap. Execution risk largest — consistently gaining share, reaching consumers, distributing to outlets is all execution-dependent.

Historical average 15–16%. Will operate in that zone. Advertising not an area we squeeze; will double down and invest consistently over medium term.

Close to ~5% indicative. Will give refreshes and more detail annually.

No guidance, but long-term aspiration is high-20s growth, meaningful mix contribution. No short/medium-term guidance.

Not giving substantial free volume. Quarter-on-quarter scale-up driven by distribution and wider availability.

Copra cycle broken; no predictable pattern. Operating ₹130–140 range last couple months. Extremely volatile, can't forecast. Taking month-on-month calls. Hair oil and copra interplay minimal due to premium positioning.

Unorganized players operate in markets (e.g., Kerala) not structurally big for us. Not right players to comment on that.

Aspiration is consistent double-digit to low-teens. If not, will be disappointed. Can't pinpoint which quarter. Unhappy if no double-digit delivery.

Unrolled series of price corrections and measures last 4 quarters; seeing exponential growth. Will normalize as bases lap. Long-term aspiration double-digit is not a forecast, but sustainability statement.

ADHO ~80%, beyond that no details.

Nothing to disclose.

Management tied to execution-risk delivery (market share gain, outlet reach). No specific FY/multi-year CAGR stated. Current 28% expected to normalize as bases lap.

Currently at 24.7% (high end); management stated dynamic (sometimes lower end, sometimes higher). No floor/ceiling given. Q2 expected under pressure.

High-cost inventory headwind into Q2; spot prices cooling. Copra cycle broken, uncertainty high on commodity rebound timing.

West Asia war, edible oil (mustard, almond), petroleum products (LLP, packaging) create unpredictable input cost swings. Copra price cycle broken; no hedging outlook given.

Q1 gross margin 61.8% down 120 bps QoQ. Management expects Q2 under stress due to high-cost inventory carrying forward. Relief only in Q3–Q4.

Management identified execution risk as single largest long-term risk. Growth dependent on consistent market share gains, outlet reach (Aarohan), and portfolio execution across competitive segments. No buffer if execution falters.

Current 28% YoY growth built on mix of bottom-up effort and base effect (weak Q1 FY26 due to prior cost actions). Growth expected to normalize to double-digit range as bases lap from Q3 onwards. Risk of market disappointment if mismanaged.

Non-ADHO portfolio (coconut ~large part, Banjara's ~5%) competes with very large organized players. Management rationalized discount to market leader but risks margin compression if competition intensifies. Coconut showing volume growth but still under profitability scrutiny.