Vadilal Enterprises Q2 FY27: PAT +15% YoY lags 42% revenue growth as margins compress

Vadilal Enterprises' standalone revenue rose 41.9% YoY to ₹375.20 Cr (from ₹264.39 Cr) while PAT grew a slower 14.9% YoY to ₹12.28 Cr (from ₹10.69 Cr), and PBT grew 15.0% to ₹16.45 Cr. Sequentially, revenue fell 46.7% from Q1's ₹703.66 Cr and PAT fell 47.3% from ₹23.30 Cr — a sharp step-down, but one that tracks the business's seasonal pattern: Q1 (Apr-Jun) is the peak summer ice-cream quarter and Q2 (Jul-Sep) the structurally weaker monsoon quarter, so the QoQ drop is seasonality, not a demand signal.

The YoY story is margin compression outpacing topline growth: net margin fell to 3.27% from 4.02% a year ago, and the EBITDA-equivalent operating margin (PBT adjusted for other income, finance costs and depreciation) fell to 6.21% from 7.58%. The driver sits in cost of goods — purchases of stock-in-trade rose to 73.9% of revenue from 70.5% a year ago, a 3.4-point swing that more than offset better-contained employee costs (4.27% of revenue vs 4.84%) and other expenses (13.73% vs 15.39%). The effective tax rate was stable near 25% in both periods, so tax wasn't a factor. Notably, the operating margin actually improved sequentially to 6.21% from Q1's 5.39%, despite revenue nearly halving quarter-on-quarter.

The stock went into the print at ₹9,600, down 7.5% over the past month of trading.

Basic EPS ₹142.35 vs ₹123.92 YoY (+14.9%, tracking PAT growth) — vs ₹270.09 in the seasonally stronger Q1

No formal analyst coverage or consensus estimates for this micro-cap distributor turned up in a search, so there is no street number to benchmark against, and management has issued no formal guidance on record — both angles are unresolved by omission rather than by a miss. The quarter's defining event sits outside the P&L: Vadilal Enterprises exists to market and distribute Vadilal Industries' ice cream and frozen-dessert products, and that underlying supply agreement lapsed on September 30, 2026. An initial renewal attempt was rejected by shareholders on September 10, 2026, before a fresh EGM on October 27, 2026 approved a new one-year pact (November 1, 2026 to October 31, 2027) — closing the gap just three days before this board meeting. No management press release accompanied this filing, so there is no company commentary to reconcile against the numbers.