GRM Overseas Limited Q2 FY27 profit rises 27% to Rs 18.8 crore

GRM Overseas Limited reported Q2 FY27 profit after tax of Rs 18.8 crore, up 27.1% year on year, as total income increased 21.9% to Rs 453.4 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin rose to 7.0% from 6.6%. The quarter ended September 30, 2026.

How did GRM perform in Q2 FY27?

GRM delivered faster growth in operating profit than in income during Q2 FY27. Total income rose to Rs 453.4 crore from Rs 372.1 crore in Q2 FY26, an increase of 21.9%, while EBITDA increased 30.2% to Rs 31.8 crore from Rs 24.5 crore. EBITDA includes other operating income and other income, according to the company’s financial highlights.

Profit before tax increased 35.5% year on year to Rs 25.2 crore from Rs 18.6 crore. PAT rose to Rs 18.8 crore from Rs 14.8 crore, while cash profit increased to Rs 19.8 crore from Rs 15.5 crore. The Q2 PAT margin was 4.1%, compared with 4.0% in the corresponding quarter of FY26.

Chairman and Managing Director Atul Garg said GRM had recorded another quarter of profitable growth following its first-quarter FY27 performance. He attributed the sequential acceleration in profitability to better earnings from operations, scale benefits and continued operational-efficiency efforts, although the release did not provide Q1 FY27 figures for a numerical sequential comparison.

Why did GRM’s Q2 margin increase?

GRM attributed Q2 FY27’s EBITDA margin increase to better operating earnings, scale benefits and operational-efficiency efforts, while reported EBITDA margin rose to 7.0% from 6.6% a year earlier. The 0.4-percentage-point expansion accompanied 30.2% EBITDA growth, which exceeded the 21.9% increase in total income.

PAT margin increased by 0.1 percentage point to 4.1% from 4.0%, while profit before tax grew 35.5%, faster than both EBITDA and total income. The figures show an improvement in the quarterly margins disclosed by GRM, although the release does not provide a line-by-line explanation of costs, tax expense or other factors behind the movement.

For the first half of FY27, the margin comparison differed from the quarter. H1 EBITDA margin was 7.7%, below 7.9% in H1 FY26, while H1 PAT margin was 4.6%, below 4.8%. The Q2 year-on-year margin expansion therefore did not fully offset the margin decline reported for the six months ended September 30, 2026.

What were GRM’s H1 FY27 financial results?

GRM reported H1 FY27 total income of Rs 880.4 crore, up 24.6% from Rs 706.5 crore in H1 FY26. EBITDA rose 21.0% to Rs 67.9 crore from Rs 56.1 crore, while PAT increased 18.6% to Rs 40.2 crore from Rs 33.9 crore for the half year ended September 30, 2026.

Profit before tax for H1 FY27 was Rs 55.1 crore, compared with Rs 44.0 crore a year earlier, a rise of 25.3%. Cash profit increased to Rs 42.2 crore from Rs 35.4 crore. Unlike Q2, the 24.6% expansion in half-year total income was greater than the 21.0% increase in EBITDA, corresponding with the 0.2-percentage-point decline in the half-year EBITDA margin.

The two periods showed different margin trends. Q2 EBITDA margin increased to 7.0% from 6.6%, whereas the H1 margin declined to 7.7% from 7.9%. GRM’s Q2 PAT margin also increased to 4.1%, but its H1 PAT margin fell to 4.6% from 4.8%.

Which businesses drove GRM’s revenue growth?

GRM’s India business grew faster than its international business in both reported periods. India business revenue was Rs 171 crore in Q2 FY27, up 37% year on year, and Rs 381 crore in H1 FY27, up 54%. India contributed about 44% of H1 revenue, compared with 37% a year earlier, according to the company.

The international business reported Q2 FY27 revenue of Rs 279 crore, a 25% year-on-year increase, and H1 FY27 revenue of Rs 494 crore, up 16%. India therefore outpaced international revenue growth by 12 percentage points in Q2 and 38 percentage points in H1. The management-reported business revenue figures do not exactly reconcile with consolidated total income of Rs 453.4 crore for Q2 and Rs 880.4 crore for H1.

Management said the shift towards branded domestic business is central to its Vision FY28 roadmap. GRM said it is deepening the presence of its 10X and Zarda King brands through general trade, modern retail and digital commerce, while pursuing opportunities in premium, health and convenience-led categories, including Ready-to-Cook and Ready-to-Eat products.

GRM also said it is expanding into new international markets and diversifying its footprint despite ongoing geopolitical challenges in key markets. The company said 10X Ventures provides an additional platform to identify and scale new-age consumer brands, but did not disclose investment amounts, launch dates, sales targets or financial contributions from that platform.

Conclusion

GRM’s Q2 FY27 results combined 21.9% total-income growth with faster EBITDA growth of 30.2% and PAT growth of 27.1%. Quarterly EBITDA margin rose to 7.0% from 6.6%, while India business growth of 37% exceeded the international business’s 25% increase, aligning with management’s stated domestic-brand focus.

For the second half of FY27, management plans to scale 10X, expand the portfolio and strengthen GRM’s global branded presence. The next results can show whether India sustains its approximately 44% H1 revenue contribution, whether international expansion continues amid geopolitical challenges, and whether the Q2 margin improvement carries into subsequent periods.