New Delhi: Sarveshwar Foods Limited, a leading processor and exporter of premium basmati rice and organic food products, reported a steady financial performance for the first quarter of FY27. The company posted healthy growth in revenue and net profit despite a decline in operating margins, reflecting resilient demand and improved profitability.
The Q1 FY27 results indicate that while sales momentum remained strong, higher operating costs continued to weigh on EBITDA margins.
Sarveshwar Foods Q1 FY27 Financial Highlights
Sarveshwar Foods reported revenue from operations of ₹358.03 crore, compared with ₹301.35 crore in the corresponding quarter last year, registering an 18.81% year-on-year growth. However, revenue declined 6.43% sequentially from the previous quarter.
EBITDA stood at ₹15.35 crore, down from ₹16.77 crore in Q1 FY26, reflecting an 8.45% year-on-year decline. On a sequential basis, EBITDA improved 1.67%, indicating some recovery in operating performance.
The company’s EBITDA margin declined to 4.29%, compared with 5.57% in the year-ago quarter, though it improved from 3.95% in the previous quarter. The lower year-on-year margin suggests that rising input and operating costs affected profitability despite higher revenue.
Profit Before Tax and Net Profit Show Healthy Growth
Despite pressure on operating margins, Sarveshwar Foods reported stronger bottom-line performance.
Profit Before Tax (PBT) increased to ₹10.82 crore from ₹9.34 crore, registering a 15.82% year-on-year and 4.05% quarter-on-quarter increase.
Net Profit (PAT) rose to ₹8.22 crore, compared with ₹7.02 crore in the same quarter last year, representing a 17.04% YoY growth. Sequentially, PAT increased 11.87%.
After accounting for minority interest, PAT attributable to shareholders stood at ₹8.21 crore, up 17.05% YoY and 11.79% QoQ, indicating continued earnings growth for equity shareholders.
Higher Other Income Supports Earnings
A notable contributor to the quarterly performance was the rise in other income, which increased to ₹1.95 crore from ₹0.36 crore in the year-ago quarter and ₹1.54 crore in the previous quarter.
The higher non-operating income helped offset part of the pressure from lower operating margins, supporting overall profit growth during the quarter.
Business Outlook
Sarveshwar Foods continues to benefit from growing domestic and international demand for premium basmati rice, organic products, and packaged food offerings. The company has been expanding its branded product portfolio while strengthening its export presence in key overseas markets.
Going forward, investors will closely monitor:
– Demand for basmati rice in export markets.
– Raw material and procurement costs.
– Recovery in EBITDA margins.
– Growth in branded and value-added food products.
– Export volumes and international pricing trends.
Conclusion
Sarveshwar Foods delivered a balanced Q1 FY27 performance, with revenue rising 18.81% and net profit increasing 17.04% year-on-year. While EBITDA and operating margins declined compared with last year, the company managed to improve profitability through better tax efficiency and higher other income.
If the company succeeds in restoring margins while maintaining strong revenue growth, it could strengthen its earnings trajectory over the remainder of FY27.
Also see
Dixon Technologies Q1 FY27 Results: Net Profit Surges, But EBITDA Margin Falls Below Estimates