Regaal Resources net profit rises 47% YoY to ₹133.3 million in Q1FY27
Regaal Resources posted a 47% YoY rise in Q1FY27 net profit to ₹133.28 million, aided by inventory benefits and cost controls. Revenue fell 18% to ₹2,021.49 million, but EBITDA grew to ₹310 million with margins expanding to 15.35%. Capacity expansions at Kishanganj were commissioned during the quarter.
*this image is generated using AI for illustrative purposes only.
Regaal Resources reported a net profit of ₹133.28 million for the quarter ended June 30, 2026, marking a 47% increase from ₹90.67 million in the corresponding quarter of FY25. The Board of Directors approved the unaudited standalone financial results on August 14, 2026.
Revenue from operations stood at ₹2,021.49 million, down 18% year-on-year from ₹2,465.69 million. Despite the topline contraction, earnings before interest, tax, depreciation and amortisation (EBITDA) rose to ₹310 million from ₹244 million in Q1FY26. Consequently, the EBITDA margin expanded to 15.35% from 9.92% in the prior year period. Earnings per share (basic) rose to ₹1.30 from ₹1.10 in Q1FY25.
Operational Expansion
The company highlighted significant capacity enhancements at its Kishanganj, Bihar factory during the quarter:
- Commissioned enhanced crushing capacity from 825 MT per day (TPD) to 1,650 TPD.
- Launched a new Liquid Glucose (LG) manufacturing facility with a production capacity of 180 TPD.
- Established a new Maltodextrin Powder (MDP) manufacturing facility with a capacity of 50 TPD.
- Increased captive co-generation power plant capacity from 7.1 MW to 15.8 MW.
These expansions are expected to support future volume growth and product diversification in the maize starch derivatives segment.
Financial Performance
| Metric | Q1FY27 (₹ Mn) | Q1FY26 (₹ Mn) | Change |
|---|---|---|---|
| Revenue from Operations | 2,021.49 | 2,465.69 | -18% |
| Total Income | 2,025.72 | 2,468.26 | -18% |
| EBITDA | 310.00 | 244.00 | +27% |
| EBITDA Margin | 15.35% | 9.92% | +543 bps |
| Total Expenses | 1,847.09 | 2,347.64 | -21% |
| Profit Before Tax | 178.63 | 120.62 | +48% |
| Net Profit | 133.28 | 90.67 | +47% |
Total expenses fell 21% to ₹1,847.09 million, driven primarily by a favorable change in inventories of finished goods, stock-in-trade, and work-in-progress, which contributed a negative expense of ₹125.88 million compared to a positive expense of ₹83.85 million in the prior year quarter. Cost of materials consumed decreased to ₹1,276.55 million from ₹1,340.28 million.
What the Numbers Show
The divergence between revenue decline and profit growth is largely attributable to inventory accounting. In Q1FY26, the company recorded an expense due to inventory buildup, whereas in Q1FY27, inventory drawdowns reduced total expenses significantly. This suggests that the profit surge is partly structural rather than purely operational, as core revenue generation contracted. However, the expansion of EBITDA margin from 9.92% to 15.35% indicates improved operational leverage alongside the inventory benefit. Finance costs rose to ₹79.09 million from ₹87.19 million, indicating stable debt servicing obligations despite expansion activities.
Regulatory and Corporate Updates
The financial results were reviewed by Singhi & Co., Chartered Accountants, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
On July 21, 2026, the company allotted 270,400 equity shares under its employee stock option plan, increasing paid-up capital from ₹513.62 million to ₹514.97 million. The company also disclosed a provision of ₹66.57 million in the previous fiscal year related to SGST reimbursement reversals, noting that no further material impact is likely.
Historical Stock Returns for Regaal Resources
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.03% | -1.01% | +5.74% | +44.03% | -34.64% | -34.64% |
How sustainable is the 15.35% EBITDA margin expansion once the favorable inventory accounting effects normalize in subsequent quarters?
What is the expected timeline for the new Liquid Glucose and Maltodextrin facilities to reach full operational capacity and contribute to revenue growth?
Will the significant capital expenditure on capacity doubling and power plant upgrades require additional debt financing, potentially impacting future interest costs?
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