EID Parry Q2 FY27 Results Analysis: PAT Falls 40%, Sugar Loss Narrows (EIDPARRY)
EID Parry (India) Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 11,213.33 Cr (+7.18% YoY) and PAT growth of -37.42% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 11,213.33 Cr (+7.18% YoY) |
| PAT (Q2) | Rs. 479.43 Cr (-37.42% YoY) |
| EBITDA margin | 8.87% (-347 bps YoY) |
| EPS (Q2) | Rs. 14.20 (-40.51% YoY) |
Quarter Snapshot
Sugar and distillery segments returned to profit and the Sugar & Biofuel divisional loss narrowed to Rs.(22.35) Cr, marking a clear cyclical inflection in the standalone business. However, consolidated owners' PAT fell 40.42% YoY on ~990 bps EBITDA margin compression driven by the nutrient & allied segment, a collapse in other income, and working-capital-heavy H1 cash flows (CFO/PAT 0.74x). Management's prior targets (CPG break-even, PSRIPL period costs, Nutra margins) remain broadly on track, though the jaggery facility slipped one quarter to Q4 FY27.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Margins | "likely compressing" on cane-cost step-up and frozen ethanol prices | consolidated EBITDA margin 8.87% vs 12.34% YoY | Played out |
| Revenue | "likely in-line to behind" | continuing revenue +7.18% YoY; standalone +14.83% | Partially |
| Distillery | "demand stayed soft", ENA firming late | distillery in profit Rs.+2.17 Cr; realization still down YoY | Partially |
| PSRIPL | "period costs only" from Q2; SEZ exit by Sep 30 | discontinued loss Rs.(1.46) Cr; SEZ exit in progress, completion unconfirmed | Played out / open |
| CPG break-even path | testable within 4–5 quarters of Aug 2026 | YoY loss narrowed, QoQ widened | Partially |
| Coromandel kharif demand | "demand watch" | nutrient & allied result −24.15% YoY | Played out |
| Policy | no ethanol/MSP respite; stock caps/imports | B-heavy/syrup diversion prohibited for ESY 2026-27 | Played out |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| CPG quarterly break-even within 4–5 quarters | Q1 FY27 earnings call, Aug 13, 2026 | Q2 standalone CPG loss Rs.(24.48) Cr vs Rs.(26.93) Cr year-ago; widened QoQ from Rs.(11.98) Cr | On Track |
| Jaggery facility commissioning by end FY27 Q3 | Q4 FY26 call, reiterated Aug 2026 | now "expected by Q4 FY27 — one quarter shift on account of delay in statutory approvals" | Missed |
| PSRIPL period costs only from Q2; SEZ exit by Sep 30, 2026 | Q1 FY27 call | discontinued-ops loss only Rs.(1.46) Cr, revenue Rs.7.80 Cr; SEZ exit "progressing as per plan" (completion not confirmed) | On Track |
| Nutraceuticals steady-state 12–15% EBITDA margin | earnings-call Q&A | Q2 consolidated margin 10.94% | On Track |
| Highest-ever Nutra revenue in FY27 | earnings-call commentary | H1 revenue Rs.131.2 Cr vs Rs.88.2 Cr (+1.5× per presentation) | On Track |
| TN & AP crush flat to −5% in FY27 | Q4 FY26 call | H1 cane crushed 5.5 LMT vs 5.8 LMT | On Track |
| Non-core land monetisation progress in FY27 | Q1 FY27 call | no land-sale disclosure in the filing | Too Early |
Key Investment Insights
Key Positives
- Sugar segment returned to profit at Rs.5.33 Cr (consolidated) from a Rs.20.93 Cr loss YoY, on revenue up 32.41%
- Distillery turned profitable at Rs.2.17 Cr vs a Rs.16.02 Cr loss YoY
- Sugar & Biofuel division loss narrowed to Rs.(22.35) Cr from Rs.(61.28) Cr
- Standalone loss after tax narrowed to Rs.(22.49) Cr from Rs.(285.62) Cr; standalone revenue +14.83% YoY
- Nutraceuticals underlying margin improved to 10.94% vs 7.54% ex-insurance-claim; H1 revenue Rs.131.2 Cr vs Rs.88.2 Cr, tracking highest-ever FY27 revenue
- Employee costs disciplined (−1.95% QoQ) and other expenses nearly flat YoY (+3.30%) with cash fixed costs down to ~Rs.147 Cr H1 FY27 from ~Rs.157 Cr
- Short-term borrowings reduced 39.16% to Rs.1,648.43 Cr
Risk Factors
- Owners' PAT fell 40.42% YoY to Rs.252.86 Cr despite revenue up 7.18%
- Nutrient & allied segment result fell 24.15% YoY on only 4.33% revenue growth; margin compressed to 8.25% from 11.35%
- Consolidated EBITDA margin compressed ~990 bps YoY to 8.87%
- Other income collapsed from Rs.147.34 Cr to Rs.8.88 Cr YoY; net un-allocable swing of Rs.(114.83) Cr
- H1 free cash flow negative at Rs.(100.01) Cr; working capital absorbed Rs.901.56 Cr including subsidy receivables of Rs.1,367.27 Cr
- Co-generation loss widened 22.69% YoY to Rs.(29.85) Cr; consumer products loss Rs.(24.48) Cr on revenue down 26.86%
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.