KRBL Limited reported a 6% decrease in revenue to INR 1,496 crore for Q1 FY27. However, EBITDA surged by 64% to INR 372 crore, while Profit After Tax (PAT) rose 73% to INR 261 crore. The company attributed export revenue decline to Middle East logistics disruptions, offset by growth in other regions. Domestic revenue saw a 14% increase driven by higher rice realization.
KRBL Limited: Q1 FY27 Earnings Conference Call Highlights
KRBL Limited has announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company reported a total income of INR 1,560 crore, a decrease of 3% compared to the corresponding quarter last year. This decline was primarily driven by a 50% drop in export revenue, largely due to disruptions in the Middle East market. However, exports to other regions grew by 37%.
Strong EBITDA and PAT Growth
Despite the revenue dip, KRBL demonstrated robust profitability. EBITDA for the quarter stood at INR 372 crore, marking a significant increase of approximately 64% over the previous year. Profit After Tax (PAT) also saw substantial growth, reaching INR 261 crore, up by about 73% year-on-year. The company’s EBITDA margin improved to 23.8% from 13.9% in the same period last year, and the PAT margin stood at 16.7%.
Domestic Business Performance
The domestic business segment showed strong resilience, with revenue growing by 14% year-on-year to INR 1,221 crore. This growth was primarily fueled by an 11% increase in rice realization. While branded rice volumes saw a modest decline due to lower bulk pack sales, the company anticipates a recovery in bulk pack volumes in the upcoming quarters. KRBL is focused on its four strategic priorities: democratizing distribution, remodeling the supply chain, investing in the India Gate brand, and building its portfolio beyond basmati.
Export Market Challenges and Outlook
The geopolitical situation, particularly the conflict involving Iran and the Middle East, significantly impacted export volumes, with the Middle East accounting for approximately three-quarters of Indian Basmati exports. Freight rates saw a substantial increase. However, the company noted that the situation is showing signs of reopening and expects export volumes to recover progressively from the second quarter. KRBL is maintaining its guidance for meaningful export growth for the full year.
Financial Snapshot and Inventory
Total inventory as of June 30, 2026, was INR 2,944 crore, comprising INR 286 crore in paddy inventory and INR 2,481 crore in rice inventory. Total cash plus investments stood at INR 1,841 crore, an increase driven by lower net working capital requirements and higher internal accruals.
Key Management Commentary
Mr. Anil Kumar Mittal, Chairman and Managing Director, highlighted the unusual quarter for the industry and provided insights into the global rice balance, India’s production, and export outlook. He noted a projected decline in global rice production for the ’26-’27 marketing year while consumption is expected to rise, leading to tighter world balance sheets. Mr. Ayush Gupta, Head of India Business, discussed the domestic business performance, strategic initiatives, and the positive outlook for domestic volumes. Mr. Ashish Jain, Chief Financial Officer, provided a detailed financial overview, explaining the revenue and margin movements.
Source: BSE
