Ambar Protein Industries reported a 27.2% decline in net profit to ₹70.3 crore for the fiscal year ended March 31, 2026, despite revenue growing 18.7% to ₹5,006.6 crore. The edible oil manufacturer cited rising raw material costs and competitive pricing pressures as primary drivers for the contraction in profitability.

The company’s board of directors has convened the 33rd Annual General Meeting for September 30, 2026, to approve these financial statements. Shareholders will also vote on related-party transactions involving Ankur Oil Industries and variations in executive remuneration.

Financial Performance

Revenue from operations increased from ₹4,216.2 crore in FY25 to ₹5,006.6 crore in FY26. However, this top-line growth did not translate into bottom-line gains. Cost of raw materials consumed surged to ₹4,877.7 crore from ₹3,950.2 crore, outpacing revenue growth and compressing margins.

Profit before tax fell 28.0% to ₹93.9 crore. Finance costs decreased slightly to ₹20.3 crore from ₹22.7 crore, providing minor support to overall profitability. Other income declined marginally to ₹78.1 lakh from ₹84.2 lakh.

What the Numbers Show

A significant divergence exists between revenue growth and profitability. While sales expanded by nearly 19%, net profit contracted by over 27%. This indicates that gross margins were severely impacted by input cost inflation, which rose faster than selling prices could adjust. The net profit margin compressed from 2.29% in FY25 to 1.40% in FY26.

Working Capital and Balance Sheet

Current assets rose to ₹592.2 crore from ₹483.4 crore, driven primarily by a sharp increase in inventories. Inventory levels more than doubled to ₹386.7 crore from ₹204.3 crore, reflecting higher raw material procurement and commodity price movements.

Conversely, trade receivables dropped significantly to ₹101.8 crore from ₹202.8 crore, indicating improved collection efficiency. The current ratio improved to 1.57 times from 1.45 times. Total borrowings remained stable at approximately ₹259.2 crore, while total equity grew to ₹417.7 crore due to retained earnings accumulation.

Corporate Governance and AGM

The company is seeking shareholder approval for several key resolutions at the upcoming AGM:

• Reappointment of directors Bharat D Patel and Shirish D Patel, who retire by rotation.
• Approval of remuneration for cost auditors J. B. Mistri & Co. at ₹40,000 for FY27.
• Ratification of related-party transactions with Ankur Oil Industries, including leasing receipts of ₹1.0 crore and goods sales of ₹400.0 crore.
• Variation in remuneration for Managing Director Pradeep C Khetani and Whole Time Director Jayprakash J Vachhani, allowing payments exceeding statutory limits if profits are inadequate.

No dividend was recommended for FY26 as the board prioritized resource conservation.

Ambar Protein Industries reported a substantial improvement in profitability for the first quarter of FY27, with net profit after tax rising to ₹3.75 crore compared to ₹0.75 crore in the corresponding period of FY26. This represents a year-on-year increase of over 400%, signaling a recovery in the company’s bottom line despite modest headwinds on the top line.

Revenue from operations for the quarter ended June 30, 2026, stood at ₹113.45 crore, a slight decline from ₹117.27 crore recorded in Q1FY25. For the full fiscal year ended March 31, 2026, the company logged total income from operations of ₹500.66 crore.

Financial Performance

The company’s pre-tax profit for the quarter was ₹5.11 crore, up from ₹1.47 crore in the previous year. No exceptional or extraordinary items were reported in the statement of profit and loss for either period. Earnings per share (basic and diluted) increased to ₹6.53 per equity share of face value ₹10 each, compared to ₹1.30 in Q1FY25.

What the Numbers Show

The divergence between revenue and profit trends highlights an improvement in operational efficiency or cost management during the quarter. While revenue contracted by approximately 3.3% year-on-year, net profit expanded more than fourfold. This suggests that fixed costs were better absorbed or input costs declined relative to selling prices, allowing margins to expand despite lower sales volume. The absence of exceptional items indicates that the profit growth was driven by core operational performance rather than one-off gains.