VBL Q2 FY27 Results Analysis: Revenue Jumps 33%, Margin Compresses 137 bps
VBL's Q2 FY27 numbers came in mixed, with revenue of Rs. 6,815.59 Cr (+33.31% YoY) and PAT growth of +13.81% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 6,815.59 Cr (+33.31% YoY) |
| PAT (Q2) | Rs. 828.00 Cr (+13.81% YoY) |
| EBITDA margin | 20.90% (-137 bps YoY) |
| EPS (Q2) | Rs. 2.45 (+13.95% YoY) |
Quarter Snapshot
Revenue grew 33.31% YoY to Rs.6,815.59 Cr, meeting management's early-teens growth guidance though flattered by Twizza and Kenya consolidation and restatement. EBITDA margin compressed 137 bps YoY to 20.90% on a 479 bps jump in the materials ratio and Twizza dilution, leaving PAT growth at 13.81% — about 20 points below revenue growth. The margin-convergence and input-cost pass-through story into the December quarter is the key swing factor for the stock.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely ahead to in-line" | +33.31% YoY (restated base) — but the beat is heavily inorganic/restatement-driven | Played out |
| Margins | "compressing bias, cushioned by stocking and mix" | EBITDA margin 20.90%, −137 bps YoY; materials +479 bps | Played out |
| Below-the-line | "finance cost/depreciation should keep outgrowing revenue" | Finance +53.48%; D&A +34.46% ≈ revenue +33.31% | Partially |
| Inventory cushion | stocking "can convert part of the spike into an inventory-cost lag" | Drawdown of Rs.89.11 Cr vs Rs.134.95 Cr a year ago — less cushion than last year | Partially |
| Monsoon deficit (Aug 84%/Sep 92% of LPA, per pre-call note, web-sourced, dated) showing in volumes | Watch item | No volume data in filing | Not observable |
| STING/FSSAI, Crickley, COO successor, PepsiCo concentrate | Watch items | Not addressed in the filing — open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Consolidated revenue growth "early teens from the next quarter" | Stated at the Q3 CY2025 earnings call (per prior-quarter analyst notes) | +33.31% YoY (restated base incl. Kenya pooling) — though inorganic additions and restatement flatter the read | Met |
| International EBITDA margins converging to India levels "within the next couple of years" | Prior earnings calls (per prior-quarter analyst notes) | Consolidated EBITDA margin −137 bps YoY this quarter | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 33.31% YoY to Rs.6,815.59 Cr; nine-month revenue up 23.59% YoY to Rs.22,371.24 Cr
- PAT to owners grew 13.81% YoY to Rs.828.00 Cr; nine-month PAT to owners up 15.75%
- EBITDA grew 25.09% YoY to Rs.1,424.43 Cr
- Employee costs grew only 6.80% YoY, a 220 bps favorable ratio leverage
- Standalone revenue grew 24.75% YoY; international subsidiaries contributed Rs.169.47 Cr to owners' PAT
- Effective tax rate stable at 21.09% vs 21.11% a year ago
- Third interim dividend of Rs.0.50/share declared (Rs.169.12 Cr total, 20.43% payout)
Risk Factors
- EBITDA margin compressed 137 bps YoY to 20.90%, second consecutive quarter of compression
- Materials cost ratio jumped 479 bps YoY to 42.69% as materials spend grew 50.18% vs 33.31% revenue growth
- Finance costs grew 53.48% YoY, outpacing revenue, on Twizza acquisition debt
- Normalized PAT growth of 11.43% trails EBITDA growth, confirming below-the-line and margin drag
- Crickley Dairy acquisition (Rs.1,314.68 Mn EV) terminated and referred to AFSA arbitration with no provision disclosed
- Standalone EBITDA margin also fell 166 bps YoY, indicating the drag is not solely a Twizza artifact
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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.