Synopsis: Alcohol stock fell 6.7 percent despite a 46 percent jump in Q1 FY27 net profit, as investors reacted to weaker quarter-on-quarter earnings, higher input costs, and lower other income.
The share of this company, which manufactures and markets Alcoholic Beverages such as Country Liquor (CL) and Indian-made Foreign Liquor, came under pressure after announcing Q1 results
With a market capitalization of Rs 2,216 crore, G M Breweries Ltd’s share on Thursday fell to a day low of Rs 956.30 per share, down by 6.7 percent from its today’s high of Rs 1,020 per share. In the last 1 year, the stock has given a positive return of 30 percent, outperforming major indices.
Q1 Result Overview
YoY View: The company’s revenue from operations increased by 22.44 percent to Rs 199.58 crore in Q1 FY27 from Rs 163 crore in Q1 FY26. Profit before tax rose 45.92 percent to Rs 50.43 crore in Q1 FY27 from Rs 34.56 crore in Q1 FY26, while net profit jumped 46 percent to Rs 37.74 crore in Q1 FY27 from Rs 25.86 crore in Q1 FY26. Earnings per share (EPS) also grew 45.94 percent to Rs 16.52 in Q1 FY27 from Rs 11.32 per share in Q1 FY26.
QoQ View: The company’s revenue from operations slipped 1.20 percent to Rs 199.58 crore in Q1 FY27 from Rs 202 crore in Q4 FY26. Profit before tax declined 25.84 percent to Rs 50.43 crore from Rs 68 crore, while net profit fell 30.11 percent to Rs 37.74 crore from Rs 54 crore. Earnings per share (EPS) also dropped 29.88 percent to Rs 16.52 in Q1 FY27 from Rs 23.56 per share in Q4 FY26.
Why did the shares fall despite robust YoY numbers?
Sequential Profit Declined
Despite reporting strong year-on-year growth, the company’s earnings weakened on a sequential basis. Net profit fell by 30.2 percent, dropping from Rs 54.07 crore in Q4 FY26 to Rs 37.74 crore in Q1 FY27. The decline suggests that profitability came under pressure during the quarter.
Revenue Slipped QoQ
The company’s revenue from operations also saw a slight decline compared to the previous quarter. Revenue stood at Rs 199.58 crore in Q1 FY27, down from Rs 202 crore in Q4 FY26. While the fall was modest, it points to slower business momentum during the quarter.
Higher Raw Material Costs Weighed on Margins
Input costs increased even as revenue softened. The cost of materials consumed rose from Rs 131.31 crore in Q4 FY26 to Rs 138.25 crore in Q1 FY27. Rising raw material expenses, along with lower revenue, put pressure on the company’s operating margins.
Sharp Fall in Other Income
The company also reported a steep decline in other income during the quarter. Other income dropped by around 68 percent, falling from Rs 17.33 crore in Q4 FY26 to Rs 5.55 crore in Q1 FY27. The sharp reduction in non-operating income further impacted the company’s overall profitability.
About the Company
G M Breweries Ltd is the largest manufacturer of country liquor in Maharashtra. Headquartered in Mumbai. It primarily produces country liquor and Indian-made foreign liquor (IMFL) out of its highly automated Virar facility. The company is growing steadily and has earned a dedicated customer base. GMBL is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share.
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