KRBL Ltd, the leading basmati rice producer and owner of the India Gate brand, delivered impressive profit growth in Q1 despite facing revenue headwinds. According to reports from CNBC TV18, the company reported a 73.16% year-on-year rise in net profit to ₹260.74 crore for Q1, compared with ₹150.58 crore in the corresponding quarter last year. However, revenue declined 5.6% year-on-year to ₹1,496 crore from ₹1,585 crore in Q1 of the previous year.
The company's operational efficiency demonstrated substantial improvement during the quarter. As reported by CNBC TV18, Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 59.7% to ₹307.58 crore from ₹192.65 crore a year ago. The EBITDA margin expanded significantly to 20.56% compared with 12.16% in the year-ago quarter, indicating enhanced operational leverage and cost management effectiveness.
The Agri segment showed mixed performance with revenue declining 5% year-on-year to ₹1,492 crore, largely due to a sharp drop in exports. According to CNBC TV18, domestic revenue within the segment rose around 15% YoY to ₹1,248 crore, while export revenue fell nearly 50% to ₹244 crore. Despite the revenue decline, the Agri EBIT margin expanded significantly to 22.5% from 11.5% a year earlier, demonstrating improved operational efficiency in the domestic market.
Market responded positively to KRBL's strong financial performance, with shares climbing over 6% on Friday, August 14 following the Q1 results announcement. As reported by CNBC TV18, the stock movement reflects investor confidence in the company's ability to deliver profit growth despite revenue challenges. The other income also doubled to ₹64 crore from ₹32 crore in the year-ago quarter, contributing to the overall improved financial performance.
