VBL Q2 FY27 Results Analysis: Revenue Jumps 33%, Margin Compresses 137 bps

Cofacto Research Published October 30, 2026 3 min read

Neutral

VBL's Q2 FY27 numbers came in mixed, with revenue of Rs. 6,815.59 Cr (+33.31% YoY) and PAT growth of +13.81% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 6,815.59 Cr (+33.31% YoY)
PAT (Q2)	Rs. 828.00 Cr (+13.81% YoY)
EBITDA margin	20.90% (-137 bps YoY)
EPS (Q2)	Rs. 2.45 (+13.95% YoY)

Quarter Snapshot

Revenue grew 33.31% YoY to Rs.6,815.59 Cr, meeting management's early-teens growth guidance though flattered by Twizza and Kenya consolidation and restatement. EBITDA margin compressed 137 bps YoY to 20.90% on a 479 bps jump in the materials ratio and Twizza dilution, leaving PAT growth at 13.81% — about 20 points below revenue growth. The margin-convergence and input-cost pass-through story into the December quarter is the key swing factor for the stock.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue	"likely ahead to in-line"	+33.31% YoY (restated base) — but the beat is heavily inorganic/restatement-driven	Played out
Margins	"compressing bias, cushioned by stocking and mix"	EBITDA margin 20.90%, −137 bps YoY; materials +479 bps	Played out
Below-the-line	"finance cost/depreciation should keep outgrowing revenue"	Finance +53.48%; D&A +34.46% ≈ revenue +33.31%	Partially
Inventory cushion	stocking "can convert part of the spike into an inventory-cost lag"	Drawdown of Rs.89.11 Cr vs Rs.134.95 Cr a year ago — less cushion than last year	Partially
Monsoon deficit (Aug 84%/Sep 92% of LPA, per pre-call note, web-sourced, dated) showing in volumes	Watch item	No volume data in filing	Not observable
STING/FSSAI, Crickley, COO successor, PepsiCo concentrate	Watch items	Not addressed in the filing — open for the call	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Consolidated revenue growth "early teens from the next quarter"	Stated at the Q3 CY2025 earnings call (per prior-quarter analyst notes)	+33.31% YoY (restated base incl. Kenya pooling) — though inorganic additions and restatement flatter the read	Met
International EBITDA margins converging to India levels "within the next couple of years"	Prior earnings calls (per prior-quarter analyst notes)	Consolidated EBITDA margin −137 bps YoY this quarter	Too Early

Key Investment Insights

Key Positives

Consolidated revenue grew 33.31% YoY to Rs.6,815.59 Cr; nine-month revenue up 23.59% YoY to Rs.22,371.24 Cr
PAT to owners grew 13.81% YoY to Rs.828.00 Cr; nine-month PAT to owners up 15.75%
EBITDA grew 25.09% YoY to Rs.1,424.43 Cr
Employee costs grew only 6.80% YoY, a 220 bps favorable ratio leverage
Standalone revenue grew 24.75% YoY; international subsidiaries contributed Rs.169.47 Cr to owners' PAT
Effective tax rate stable at 21.09% vs 21.11% a year ago
Third interim dividend of Rs.0.50/share declared (Rs.169.12 Cr total, 20.43% payout)

Risk Factors

EBITDA margin compressed 137 bps YoY to 20.90%, second consecutive quarter of compression
Materials cost ratio jumped 479 bps YoY to 42.69% as materials spend grew 50.18% vs 33.31% revenue growth
Finance costs grew 53.48% YoY, outpacing revenue, on Twizza acquisition debt
Normalized PAT growth of 11.43% trails EBITDA growth, confirming below-the-line and margin drag
Crickley Dairy acquisition (Rs.1,314.68 Mn EV) terminated and referred to AFSA arbitration with no provision disclosed
Standalone EBITDA margin also fell 166 bps YoY, indicating the drag is not solely a Twizza artifact