Hatsun Agro Product Ltd Q1 FY27 Results Analysis: Revenue Jumps 19%, Margin Compresses 264 bps

Hatsun Agro Product Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 3,090.49 Cr (+19.31% YoY) and PAT growth of -1.11% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 19.31% YoY, near the 20% FY27 guidance, driven by GST cuts and volume growth. However, input cost inflation compressed EBITDA margin 264 bps YoY, leading to a slight PAT decline. Deleveraging and a credit rating upgrade are positives, but margin recovery remains key.

Key Investment Insights

Key Positives

• Revenue grew 19.31% YoY to Rs.3,090.49 Cr, near the 20% FY27 guidance.
• EBITDA margin improved 221 bps QoQ to 11.44% from 9.23% in Q4FY26.
• Finance costs declined 27.09% YoY due to deleveraging.
• CRISIL upgraded the long-term rating to AA (Stable).
• Other expenses grew 14.38% YoY, below revenue growth of 19.31%, indicating cost discipline.

Risk Factors

• EBITDA margin compressed 264 bps YoY to 11.44% from 14.08% due to input cost inflation.
• Cost of materials increased 37.32% YoY, outpacing revenue growth of 19.31%.
• PAT declined 1.11% YoY despite revenue growth, reflecting margin pressure.
• Input cost pressure from milk procurement and packaging materials persists.