Vadilal Enterprises Q2 FY27: PAT +15% YoY lags 42% revenue growth as margins compress
PAT +14.87% YoY · revenue +41.91% · margins compressing
₹375.2 Cr
+41.91% YoY
₹12.28 Cr
+14.87% YoY
3.26%
-0.8pp YoY
₹142.35
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.
Q2 FY-2027 vs prior quarters
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.
What the summary numbers don't show
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.
W1
Terms of the newly renewed VIL supply agreement (effective Nov 1, 2026) and whether they ease the purchase-cost pressure that pushed cost of goods to 73.9% of revenue this quarter
W2
Q3 FY27 print as the next read on whether YoY margin compression (NPM 4.02%→3.27%) persists or reverses
W3
No formal management guidance exists on record — watch for outlook commentary in future filings or calls