Gujarat Ambuja’s consolidated profit jumps 246.6% to 131.79 crore rupees despite lower revenue
Key Facts
Gujarat Ambuja Exports raised its consolidated net profit in the second quarter of fiscal 2027 to 131.79 crore rupees, up 246.6% year on year from 38.02 crore, according to results reported by Business Upturn. The jump came as consolidated revenue from operations fell 2.4% to 1,450.73 crore rupees from 1,486.69 crore a year earlier. The results showed improved profitability despite lower sales, with a marked widening in the EBITDA margin. EBITDA was 197.34 crore rupees, up 160.2% year on year. The margin rose to 13.60% from 5.10%, an increase of 850 basis points.
The annual decline in revenue was modest compared with the change in profitability, but the quarter-on-quarter comparison paints a slower picture of performance. Consolidated net profit fell 25.5% to 131.79 crore rupees from 176.77 crore in the first quarter of FY27. Consolidated revenue from operations also fell 9.0% quarter on quarter, while EBITDA declined 14.9%. The EBITDA margin contracted by 95 basis points from the first quarter. The annual profit surge therefore coincided with a quarterly decline in profit and sales, underscoring the different directions of the two comparisons.
Business Upturn attributed the margin expansion to a lower ratio of materials costs to revenue, which fell to about 66.6% in the second quarter from about 78.6% a year earlier. Employee costs rose 55.6% to 46.46 crore rupees over the same period, while other expenses increased 13.8% to 241.13 crore. These items indicate that the improved materials-cost ratio came alongside pressure in other operating expenses. The profit increase did not result from a broad-based decline in expenses, as employee costs and other expenses rose during the period. This mix puts the decline in materials costs as a share of revenue at the center of the reported margin improvement.
Consolidated finance costs were 3.21 crore rupees, down 65% from 9.14 crore in the year-earlier period, while depreciation declined 3.4% to 33.91 crore. Tax expense was 45.40 crore rupees, with an effective rate of about 25.6%, compared with about 25.1% a year earlier. These figures show some of the components of the transition from operating performance to net profit, alongside the wider margin and lower finance costs. Basic and diluted earnings per share were 2.87 rupees in the second quarter, compared with 0.83 rupees in the year-earlier period, according to data MarketScreener cited from S&P Capital IQ.
The first-half FY27 results appear stronger than the second quarter viewed alone: consolidated revenue from operations rose 9.6% to 3,044.95 crore rupees, compared with 2,777.92 crore in the previous first half. Consolidated net profit climbed 199.5% to 308.56 crore rupees from 103.04 crore. The total covers the first and second quarters, so the cumulative increase in profit was consistent with the strong annual growth recorded in the second quarter, despite the decline from the immediately preceding quarter. The available information does not include a specific later date or forward guidance from the company.