- KRBL reported Q2 FY27 profit after tax of Rs 259 crore, up 50% year on year.
- KRBL's Q2 FY27 gross margin increased to 34.5% from 29.2% in Q2 FY26.
- KRBL's Q2 FY27 revenue from operations rose 14% to Rs 1,727 crore.
- KRBL's working-capital days declined to 95 in Q2 FY27 from 147 in Q2 FY26.
KRBL reported consolidated profit after tax of Rs 259 crore in Q2 FY27, up 50% from Rs 172 crore a year earlier, as gross margin increased to 34.5% from 29.2%. Revenue from operations rose 14% to Rs 1,727 crore, while KRBL attributed the gross-margin gain to price increases, improved sales mix and higher other income.
Results, valuation, peers and who's buying, in one view.
Why did KRBL's Q2 FY27 profit grow faster than revenue?
KRBL's Q2 FY27 profit grew faster than revenue because gross profit rose 35% to Rs 609 crore while revenue from operations increased 14% to Rs 1,727 crore. Gross margin widened by 5.3 percentage points from 29.2% in Q2 FY26 to 34.5%, with KRBL attributing the movement to price increases, better sales mix and higher other income.
Total income increased 15% to Rs 1,768 crore in Q2 FY27 from Rs 1,541 crore in Q2 FY26. Other income rose to Rs 41 crore from Rs 30 crore, while cost of goods sold increased 6% to Rs 1,159 crore from Rs 1,091 crore. The difference between the growth in total income and the growth in cost of goods sold increased gross profit by Rs 159 crore.
The quarterly gross margin was below the 36.3% reported in Q1 FY27, despite being above the year-earlier 29.2%. Gross profit nevertheless increased from Rs 566 crore in Q1 FY27 to Rs 609 crore in Q2 FY27 as revenue from operations rose from Rs 1,496 crore to Rs 1,727 crore.
How did KRBL's operating and net earnings change?
KRBL's earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 45% to Rs 373 crore in Q2 FY27 from Rs 257 crore in Q2 FY26. EBITDA margin increased to 21.1% from 16.6%, although KRBL said higher proportionate other expenses partly affected the gross-margin trend at the EBITDA level.
Employee benefits expense was Rs 57 crore, compared with Rs 55 crore a year earlier, and other expenses increased to Rs 179 crore from Rs 139 crore. Finance cost remained Rs 1 crore in both quarters, while depreciation and amortisation expense was Rs 24 crore in Q2 FY27 against Rs 23 crore in Q2 FY26.
Profit before tax rose 50% to Rs 349 crore from Rs 233 crore, while tax expense increased to Rs 90 crore from Rs 60 crore. Profit after tax consequently rose to Rs 259 crore from Rs 172 crore, and the profit-after-tax margin increased to 14.6% from 11.2%. Cash profit also increased 45% to Rs 283 crore from Rs 195 crore.
How does KRBL's Q2 compare with Q1 FY27 and H1 FY27?
KRBL's Q2 FY27 revenue from operations was 15% higher than Q1 FY27, but operating and net profit were broadly unchanged sequentially. Revenue rose to Rs 1,727 crore from Rs 1,496 crore, gross profit increased to Rs 609 crore from Rs 566 crore, and EBITDA was Rs 373 crore compared with Rs 372 crore.
Margins declined from the preceding quarter: gross margin moved to 34.5% from 36.3%, EBITDA margin to 21.1% from 23.8%, and profit-after-tax margin to 14.6% from 16.7%. Profit after tax was Rs 259 crore in Q2 FY27, marginally below Rs 261 crore in Q1 FY27, despite the higher revenue base.
For H1 FY27, KRBL reported revenue from operations of Rs 3,223 crore, up 4% from Rs 3,095 crore in H1 FY26. Gross profit rose 36% to Rs 1,175 crore from Rs 862 crore and gross margin improved to 35.3% from 27.3%. EBITDA increased 55% to Rs 745 crore from Rs 482 crore, while profit after tax rose 61% to Rs 520 crore from Rs 323 crore.
H1 FY27 other income was Rs 105 crore, compared with Rs 59 crore in H1 FY26, while cost of goods sold declined 6% to Rs 2,154 crore from Rs 2,292 crore. Cash profit increased to Rs 567 crore from Rs 368 crore. These half-year movements show that the higher gross-profit and earnings levels were not limited to the Q2 year-on-year comparison.
What changed in KRBL's revenue mix and financial position?
KRBL said Q2 FY27 revenue was its highest-ever quarterly revenue, with higher domestic revenue driving the 14% year-on-year increase and lower export revenue partly offsetting that growth. The presentation does not provide a Q2 segment-revenue split, but it identifies domestic revenue as the principal source of the quarterly increase.
The H1 FY27 segment data show domestic revenue increased to Rs 2,611 crore from Rs 2,110 crore in H1 FY26, while export revenue declined to Rs 541 crore from Rs 919 crore. Power revenue increased to Rs 71 crore from Rs 66 crore. Total H1 revenue rose to Rs 3,223 crore from Rs 3,095 crore, showing that domestic and power growth more than offset the export decline.
KRBL reported total inventory of Rs 2,203 crore as of 30 September 2026, down from Rs 2,279 crore a year earlier. Rice inventory value decreased to Rs 1,900 crore from Rs 1,995 crore, while paddy inventory value increased to Rs 146 crore from Rs 123 crore. Rice inventory volume fell to 278 thousand metric tonnes from 304 thousand metric tonnes.
Working-capital days declined to 95 in Q2 FY27 from 147 in Q2 FY26. Inventory days fell to 117 from 139 and receivable days declined to 25 from 33, while payable days rose to 47 from 25. Net bank borrowings were negative Rs 2,895 crore, compared with negative Rs 2,157 crore, which KRBL attributed mainly to lower net working capital and internal accruals.
Conclusion
KRBL's Q2 FY27 results show earnings expanding faster than sales: profit after tax increased 50% to Rs 259 crore while revenue from operations rose 14% to Rs 1,727 crore. Higher pricing, sales mix and other income lifted gross margin to 34.5%, while domestic revenue growth partly offset lower export revenue.
The next reported measures to watch are whether domestic growth continues to offset the H1 export decline of Rs 378 crore, whether gross margin recovers from Q2's 34.5% to the Q1 FY27 level of 36.3%, and whether working-capital days remain below the 95 days reported in Q2 FY27. KRBL also disclosed that ICRA reaffirmed its AA(Stable) and A1+ ratings on 21 October 2026.