Vadilal Enterprises: revenue up 36% YoY but margin compression caps PAT growth at 16%
PAT +15.92% YoY · revenue +36.19% · margins compressing
₹703.66 Cr
+36.19% YoY
₹23.3 Cr
+15.92% YoY
3.31%
-0.6pp YoY
₹270.09
Vadilal Enterprises' standalone Q1 FY27 revenue from operations rose 36.2% YoY to ₹703.66 Cr (from ₹516.70 Cr), while net profit grew a slower 15.9% YoY to ₹23.30 Cr (from ₹20.10 Cr) — profit growth trailing revenue growth by roughly 20 points. The gap sits in margins: net profit margin compressed to 3.31% from 3.89% a year ago, and operating margin to 5.39% from 6.26%, as purchases of stock-in-trade rose to ₹535.52 Cr (76.1% of revenue, up from 74.3% a year ago) and other expenses climbed to ₹95.67 Cr from ₹81.25 Cr, outpacing the topline. Employee costs (₹21.20 Cr vs ₹13.58 Cr) and depreciation (₹5.98 Cr vs ₹4.70 Cr) also grew faster than revenue.
Q1 FY-2027 vs prior quarters
Sequentially the swing looks dramatic — from a ₹4.22 Cr net loss in Q4 FY26 (revenue ₹291.29 Cr) to ₹23.30 Cr profit this quarter — but this is the expected seasonal pattern for an ice-cream/food business, where the June quarter is peak season and the March quarter is structurally weak; it should not be read as an operational turnaround. It does highlight how thin FY26's full-year profit was: FY26 net profit was just ₹10.45 Cr on ₹1,217.28 Cr revenue, meaning this single quarter's PAT already exceeds the entire prior fiscal year's bottom line.
The stock went into the print at ₹10,550, up 5.5% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.
What the summary numbers don't show
EPS ₹270.09 vs ₹233.00 a year ago (+15.9%), reversing Q4 FY26's loss-driven EPS of ₹(48.92).
No consensus estimates or brokerage previews specific to Vadilal Enterprises were found (web results surfaced coverage of the separately-listed, larger Vadilal Industries instead), so the print cannot be benchmarked against street expectations. The company carries no formal guidance on record, and no management press release accompanied this filing, so there is no outlook statement to reconcile against either. The quarter's other board actions — AGM approval and a new secretarial auditor/director appointment (announced August 5) — are governance items unrelated to the operating numbers.
W1
Margin trajectory: NPM 3.31%/OPM 5.39% this quarter vs 3.89%/6.26% a year ago — watch whether Q2 FY27 holds or reverses this compression.
W2
Seasonal moderation: Q1 is the segment's peak quarter; watch for the typical sequential pullback already seen in Q4 FY26 (₹291.29 Cr revenue, ₹4.22 Cr loss) repeating later in FY27.
W3
No formal guidance on record — watch for management commentary in the earnings call/transcript for FY27 outlook.
Standalone only (no consolidated statement in filing); revenue+other income and PBT-tax both tie exactly to reported totals; no exceptional items disclosed.