GRM Overseas Q3 FY26 Profit Jumps 43% on Strong Sales

Introduction

GRM Overseas Limited, a prominent player in the agri-food processing sector, has announced strong unaudited financial results for the third quarter (Q3) and nine months (9M) ending December 31, 2025. The company demonstrated significant year-on-year (YoY) growth across key financial metrics, underscoring its robust operational performance and expanding market presence. The results, approved in a board meeting on February 4, 2026, highlight substantial gains in revenue, profitability, and margin expansion.

Stellar Q3 FY26 Performance

The third quarter of the fiscal year 2026 was particularly strong for GRM Overseas. The company's consolidated revenue from operations surged by 28.9% YoY, reaching ₹492.6 crore compared to ₹382.2 crore in the same quarter of the previous fiscal year. This top-line growth was driven by healthy demand across its key markets.

Profitability metrics showed even more impressive growth. Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose by 34.1% YoY to ₹31.3 crore. This led to an EBITDA margin expansion of 25 basis points (bps), bringing it to 6.3%. The consolidated Profit After Tax (PAT), or net profit, witnessed a remarkable 42.8% YoY jump, climbing to ₹19.3 crore from ₹13.54 crore in Q3 FY25. The PAT margin also improved by 38 basis points to 3.9%, reflecting enhanced operational efficiency.

Sustained Growth in 9M FY26

The positive momentum was not limited to the third quarter. For the nine-month period ending December 31, 2025, GRM Overseas reported a consolidated revenue of ₹1,199.1 crore, marking an 11.3% increase YoY. The company's focus on higher-margin products and operational leverage was evident in its profitability.

EBITDA for the nine-month period grew by a substantial 28.7% YoY to ₹87.3 crore, with the EBITDA margin improving by a significant 98 basis points to 7.3%. Consequently, the consolidated net profit for 9M FY26 increased by 30.3% YoY to ₹53.1 crore, with the PAT margin standing firm at 4.4%. This consistent performance over three quarters indicates a solid business foundation and effective strategy execution.

Financial Performance Summary

Key Growth Drivers: International and Domestic Strength

The company's impressive performance was fueled by strong contributions from both its international and domestic business segments. Management commentary highlighted that robust demand was a key factor behind the growth.

The international business, a primary revenue contributor for GRM Overseas, recorded a solid 21% YoY growth. This was largely driven by sustained demand for its premium basmati rice in global markets. The company has been successful in strengthening its footprint and brand recognition internationally.

Domestically, the branded business segment demonstrated significant traction. It achieved a milestone by crossing ₹200 crore in quarterly sales for the first time, registering a 26% YoY growth. The company is strategically focusing on expanding its '10X' brand through deeper channel penetration and market expansion initiatives to capture a larger share of the domestic market.

Standalone Financials and Corporate Actions

On a standalone basis, GRM Overseas also reported healthy growth. For Q3 FY26, standalone net profit rose to ₹13.12 crore from ₹11.95 crore in the corresponding quarter of the previous year. Standalone revenue from operations increased to ₹326.19 crore from ₹255.49 crore YoY.

In a significant move for its shareholders, the company's board approved a bonus share issuance in the ratio of 2:1. This means shareholders will receive two fully paid-up equity shares for every one equity share held. The shareholders approved this in an Extra Ordinary General Meeting on December 9, 2025, and the company allotted the bonus shares on December 26, 2025. This action reflects management's confidence in the company's long-term prospects and its commitment to rewarding shareholders.

Conclusion and Outlook

GRM Overseas Limited's Q3 and 9M FY26 results paint a picture of a company on a strong growth trajectory. With double-digit growth in both revenue and profit, expanding margins, and strategic successes in both domestic and international markets, the company has demonstrated its resilience and operational strength. The strong performance of its branded business and the shareholder-friendly bonus issue further bolster investor confidence. Looking ahead, the company's continued focus on brand building and market expansion positions it well to capitalize on the growing demand for quality food products.