Hatsun Agro Product Q2 FY27 Results Analysis: Revenue Jumps 19%, EBITDA Margin Compresses 195 bps
Hatsun Agro Product Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,897.64 Cr (+19.36% YoY) and PAT growth of +5.61% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 22, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 2,897.64 Cr (+19.36% YoY) |
| PAT (Q2) | Rs. 115.69 Cr (+5.61% YoY) |
| EBITDA margin | 11.44% (-195 bps YoY) |
| EPS (Q2) | Rs. 5.19 (+5.49% YoY) |
| Market cap | Rs. 23,898.66 Cr |
| CMP | Rs. 1,072.90 |
Quarter Snapshot
Revenue grew 19.36% YoY to Rs.2,897.64 Cr, sustaining the ~19% pace needed for the ~Rs.12,000 Cr FY27 guidance, but a 39.57% YoY raw-material cost surge compressed EBITDA margin 195 bps to 11.44% and held PAT growth to 5.61%. Cash conversion (CFO/EBITDA 0.99x), debt reduction of Rs.77.16 Cr, and an 89.3%-of-PAT interim dividend support balance-sheet quality. Meeting the FY27 revenue target requires H2 to rebound modestly from a Q2 run-rate ~3% below plan.
Key Investment Insights
Key Positives
- Revenue grew 19.36% YoY to Rs.2,897.64 Cr; H1 revenue of Rs.5,988.13 Cr up 19.34% YoY, on track for the ~Rs.12,000 Cr FY27 guidance
- EBITDA of Rs.331.43 Cr grew 1.99% YoY with margin flat sequentially (+9 bps QoQ at 11.44%) despite input-cost inflation
- Finance costs fell 17.45% YoY to Rs.30.98 Cr on deleveraging; debt/equity improved to 0.64 from 0.68
- H1 CFO of Rs.678.31 Cr with CFO/EBITDA of 0.99x and CFO/PAT of 2.72x; FCF of Rs.394.73 Cr after Rs.283.58 Cr capex
- Interim dividend of Rs.10/share (Rs.222.75 Cr, 89.3% of H1 PAT) paid, up from Rs.133.65 Cr in H1 FY26
- Employee costs grew only 0.50% YoY and depreciation as % of revenue fell to 5.27% from 5.94%
- Trade receivables near-zero at Rs.7.75 Cr, consistent with the branded cash-and-carry distribution model
Risk Factors
- Raw material costs surged 39.57% YoY to 70.77% of revenue (+1,025 bps) on 20-22% cumulative milk-procurement inflation
- EBITDA margin compressed 195 bps YoY to 11.44%
- PAT growth of 5.61% YoY lagged revenue growth of 19.36% due to the input-cost shock
- Q2 revenue declined 6.24% QoQ; the Q2 annualized run-rate (~Rs.11,591 Cr) sits ~3% below the Rs.12,000 Cr FY27 target, requiring an H2 rebound
- Packaging-cost inflation flagged as a risk; other expenses grew 20.43% YoY with the packaging impact not yet fully visible
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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.