Pakka (516030) Q1 26/27 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue in Q1 FY2026-27, with strong growth across segments and robust profit improvement.

• Project Jagriti funding completed and progressing as planned; PM4 machine commissioning expected by end of October, with commercial production targeted for early next year.

• Food services division posted record revenue growth, driven by B2B expansion, new channel onboarding, and significant outsourcing model development.

• Strategic focus on innovation, with a new material science center being established in Ayodhya.

• Approved audited and unaudited consolidated results, with a qualified audit opinion due to uncertainty over an overseas subsidiary's project and recoverability of Rs. 3,197.81 lakh in capital work in progress.

Financial highlights

• Q1 FY2026-27 revenue reached ₹119.60 Cr, up 42% year-over-year and 14% sequentially; EBITDA rose to ₹17.85 Cr, up 31% YoY and 36% QoQ.

• Profit before tax (PBT) was ₹8.77 Cr, up 34% YoY and 59% QoQ; wrap and carry revenue at ₹101.14 Cr, up 43% YoY and 15% QoQ.

• Food services revenue at ₹18.45 Cr, up 34% YoY and 9% QoQ; B2B segment grew 46% YoY.

• Q1 food services PBT loss of ₹1.62 Cr, slightly higher YoY due to structural changes.

• Q1 FY27 consolidated revenue: Rs. 11,939.57 lakh, up from Rs. 8,330.35 lakh YoY; net profit: Rs. 589.11 lakh, compared to a net loss of Rs. 152.98 lakh YoY.

Outlook and guidance

• Confident of continued top and bottom line growth, with significant changes expected once PM4 is operational.

• FY2027 revenue guidance around INR 500 crore; EBITDA margin target of 19% or higher, with historical margins above 23%.

• PM4 expected to add over 30,000 tons/year capacity and drive further revenue and margin expansion.

• Ramp-up for new plant: 40-50% utilization in initial months, stabilizing at 80-90% by 2028.

• Management is actively exploring financing options for the overseas project and will review the carrying amount of CWIP as clarity emerges.