Overview

• The company’s consolidated net profit slid 13.4% to Rs 647 crore in Q1 FY26, while revenue grew 6% to Rs 5,096 crore alongside 3% volume growth and flat EBITDA.
• Gross margin contracted by around 250 basis points year-on-year as higher coffee, cocoa and edible oil costs combined with rising depreciation from recent capacity expansion.
• PL Capital downgraded its rating to Hold and cut the target price to Rs 2,392, and Nuvama Institutional Equities trimmed its target to Rs 2,820 while maintaining a Buy recommendation.
• Domestic revenue climbed 5.5% and exports surged 16%, driven by rebounds in prepared foods, beverages and confectionery amid continued weakness in dairy and infant nutrition segments.
• Coffee prices have fallen about 30% post-quarter, with cocoa and edible oil costs stabilizing and milk prices expected to ease in the monsoon season to support gradual margin recovery.