Exchange: BSE | Sector: Consumer Defensive | Industry: Food Distribution
Q1 2026
Published: Jun 30, 2025
Earnings Highlights
Revenue of $427.63M up 112.1% year-over-year
EPS of $0.33 increased by 247.4% from previous year
Gross margin of 5.0%
Net income of 8.30M
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Healthy Life Agritec Ltd (HEALTHYLIFE.BO) QQ1 2026 Results Analysis â Revenue Surge Amid Margin Constraints in Indian Food Distribution
Executive Summary
Healthy Life Agritec Ltd reported a strong top-line increase for QQ1 2026 with revenue of INR 427.63 million, up 112.13% year-over-year, reflecting a low base in the prior year and a consolidation of agri-procurement activities in Maharashtra and Karnataka. Despite the robust revenue growth, gross margins remained thin at 4.96%, and operating margins were modest at 4.57% as of QQ1 2026, driven by commodity-cost dynamics and a lean cost base. Net income reached INR 8.30 million (net margin 1.94%), supported by an EBITDA of INR 13.08 million (EBITDA margin 3.06%), while other income dragged profitability by INR 8.44 million in the period. The balance sheet shows meaningful anomalies in reported liabilities and OCI components, with cash and equivalents not clearly disclosed beyond a small short-term cash position (INR 2.73 million in short-term investments) and limited liquidity visibility. Management commentary from the earnings call (not provided in the data) would be critical to validate the outlook for procurement efficiency, margin progression, and expansion plans. Absent explicit forward guidance, investors should weigh near-term margin compression against potential scale benefits, pasture-to-poultry and dairy procurement improvements, and regional expansion opportunities. The company operates in a highly cyclical and commodity-driven segment, where small shifts in input costs and distribution costs can materially impact profitability. Overall, the QQ1 2026 result set signals a growth-at-a-thin-margin profile with meaningful execution risk and a need for clearer liquidity disclosures.
Net Income: INR 8.30 million; Net Margin 1.94%; YoY 290.31%; QoQ -20.25%.
Financial Highlights
- Revenue: INR 427.63 million; YoY growth 112.13%; QoQ growth -7.67%.
- Gross Profit: INR 21.21 million; Gross Margin 4.96%; YoY Gross Profit growth 185.79%; QoQ -5.20%.
- EBITDA: INR 13.08 million; EBITDA Margin 3.06%.
- Operating Income: INR 19.55 million; Operating Margin 4.57%; YoY 501.72%; QoQ 39.09%.
- Net Income: INR 8.30 million; Net Margin 1.94%; YoY 290.31%; QoQ -20.25%.
- EPS: INR 0.33; YoY 247.37%; QoQ 106.25%.
- Cost of Revenue: INR 406.42 million; Revenue: INR 427.63 million; implies gross profit of INR 21.21 million.
- Other Income: Net other expenses of INR -8.44 million, impacting pre-tax income.
- Tax Expense: INR 2.81 million; Net Income after tax: INR 8.30 million.
- Balance sheet signals data quality questions (negative reported liabilities, OCI in excess of equity), with cash disclosures incomplete.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
427.63M
112.13%
-7.67%
Gross Profit
21.21M
185.79%
-5.20%
Operating Income
19.55M
501.72%
39.09%
Net Income
8.30M
290.31%
-20.25%
EPS
0.33
247.37%
106.25%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript not provided in the data. No management call excerpts or quotes were supplied to extract themes or quotes. As a result, key insights from management commentary (strategy, operations, market conditions) could not be summarized from source text.
Transcript not provided in the submitted data.
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Forward Guidance
No formal forward guidance is disclosed in the provided data. In the absence of explicit targets, the outlook hinges on execution in procurement optimization, cost containment, and margin discipline within a volatile commodity framework. Potential tailwinds include (1) scale-driven procurement efficiencies in Maharashtra and Karnataka, (2) product-mix shifts toward higher-margin agro products, and (3) growth in dairy and poultry channels as demand sustains. Risks include commodity-price volatility (milk, chicken), seasonal demand fluctuations, regulatory changes affecting dairy/poultry supply chains, and potential liquidity constraints given incomplete cash-flow visibility. Investors should monitor: raw-material price trajectories, procurement contracts, working capital dynamics, distribution costs, and any management discourse on capex or expansion plans that could alter the capital structure.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HEALTHYLIFE.BO Focus
4.96%
N/A
N/A
N/A
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Base-case investment thesis: Healthy Life Agritec is positioned for revenue growth in QQ1 2026, supported by a low-base effect and regional procurement expansion. However, profitability remains tethered to commodity costs, with gross and operating margins showing limited cushion. The unclear balance-sheet presentation and sparse cash-flow visibility necessitate caution; a disciplined focus on margin progression, working-capital efficiency, and transparent liquidity reporting is essential for a sustainable upside. In a favorable scenario, successful scale-up in Maharashtra/Karnataka procurement, improved product-mix toward higher-margin agro items, and cost-control initiatives could drive EBITDA and net margins higher over the next 2-3 quarters. In a bear scenario, continued commodity-price volatility and execution risks in expansion could compress margins and impair cash generation. Key factors for investors to monitor include input-cost trends, procurement contracts, channel expansion progress, and any management guidance on capex, working capital improvements, or strategic partnerships that would materially alter the risk/reward profile.
Key Investment Factors
Growth Potential
Growth potential centers on scale advantages in procurement and distribution across Maharashtra and Karnataka, potential product-mix optimization, and higher-margin agro products. If the company can sustain top-line growth while progressively improving gross margins above the current ~5%, earnings growth could outpace revenue expansion.
Profitability Risk
Key risks include commodity-price volatility in dairy and poultry, thin current-margin profile, limited liquidity visibility, accounting/data quality concerns on liabilities and OCI, and competitive intensity within regional food-distribution networks. Execution risk in expanding to new markets or scaling operations could pressure margins absent cost controls.
Financial Position
Balance sheet exhibits unusual items (negative total liabilities, large accumulated other comprehensive income loss, and substantial OCI offsets) suggesting possible data quality issues or unusual accounting treatment. Cash and equivalents disclosure is limited (only short-term investments of INR 2.73m and unclear cash flow data). Equity base appears adequate on the reported figures, but lack of transparent working-capital metrics and cash-flow transparency clouds liquidity assessment.
SWOT Analysis
Strengths
Geographic focus in Maharashtra and Karnataka, with integrated dairy, poultry, and agro product procurement.â
Positive revenue growth in QQ1 2026 suggesting demand depth in core distribution channels.
Lean operating expense base supports EBITDA generation even with thin margins.
Weaknesses
Thin gross and operating margins (gross ~4.96%, operating ~4.57%) in a highly commodity-driven business.
Ambiguities in cash-flow disclosures and balance-sheet presentation (unusual liabilities/OCT items) raise questions about liquidity and data integrity.
Limited disclosure on working capital, capex, and detailed asset base.
No visible diversification beyond regional markets, increasing concentration risk.
Opportunities
Expansion into additional Indian states could unlock procurement efficiencies and volume growth.
Potential to improve product mix with higher-margin agro products and value-added offerings.
Strategic partnerships with dairy/poultry suppliers and distributors could enhance bargaining power and margin realization.
Threats
Commodity-price volatility (milk, poultry) impacting cost of goods sold and margins.
Regulatory changes in dairy/poultry sectors could affect procurement practices and pricing.
Logistics and distribution costs amid inflationary pressures; potential supply-chain disruptions.
Limited liquidity visibility and data quality concerns could hamper investor confidence and credit access.
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