GM Breweries Posts Strong Annual Growth Amid Quarterly Profit Squeeze
GM Breweries' Q1 revenue grew 25.8% year-on-year, but profit fell 30.2% sequentially, highlighting a margin squeeze.
GM Breweries reported robust annual growth in Q1 FY27, with revenue up 25.8% and profit surging 45.9%. However, a sharp sequential decline in profit and margin points to near-term pressures.
GM Breweries has kicked off FY27 with a quarter of contrasting signals. While the company's revenue and profit showed impressive year-on-year gains, a significant sequential decline in profitability reveals underlying pressures.
The first quarter of FY27 saw revenue reach ₹802.9 crore, a solid 25.8% increase from the same period last year. Profit after tax grew even faster, jumping 45.9% year-on-year to ₹37.74 crore. This translated to a net profit margin of 4.7%, an improvement of 60 basis points from Q1 FY26. However, the picture changes when compared to the preceding quarter. Revenue dipped slightly by 1.1% from Q4 FY26, while profit fell sharply by 30.2%. This sequential drop pulled the net profit margin down from 6.7% in the March quarter.
A look at the recent quarters shows the volatility in profitability:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 802.9YoY +26% | 812.09 | 638.01 |
| Profit (₹ Cr) | 37.74YoY +46% | 54.07 | 25.86 |
| Net Profit Margin (%) | 4.7YoY +15% | 6.7 | 4.1 |
The trailing twelve-month (TTM) performance provides a steadier view, with a net profit margin of 6.1% on TTM revenue of ₹2,916.13 crore. The company maintains a robust balance sheet with zero debt and a high interest coverage ratio.
Despite the quarterly profit dip, the stock has delivered strong returns, gaining 31.7% over the past year. It trades at a P/E of 14.3, a significant discount to the industry average of 59.2. The key question for GM Breweries is whether it can stabilize its quarterly profitability closer to its TTM and annual averages in the coming quarters.
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· GMBREW
(BSE)
ISIN: INE075D01018
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