Mumbai, Oct 8 (IANS) : Shares of GM Breweries Limited fell sharply on Thursday after the company reported its second-quarter results for the financial year 2027, with investors reacting to a decline in operating margins despite growth in profit and revenue.
The stock, which had gained as much as 2 per cent earlier in the session, reversed gains and fell as much as 6.61 per cent to an intra-day low of Rs 921 on the BSE.
For the quarter ended September, GM Breweries reported a 12.3 per cent year-on-year increase in net profit to Rs 39.3 crore, compared with Rs 35 crore in the corresponding quarter last financial year.
Revenue from operations also increased 18.2 per cent to Rs 214 crore from Rs 181 crore a year earlier.
The company’s operating performance remained positive on a year-on-year basis, with EBITDA rising 12 per cent to Rs 50.3 crore from Rs 45 crore in the year-ago quarter.
However, EBITDA margin declined to 23.5 per cent from 25 per cent a year earlier, a contraction of more than 250 basis points. The margin pressure appeared to weigh on investor sentiment despite the improvement in the company’s topline and bottom line.
GM Breweries, which makes brands including Santra, G.M. Doctor and G.M. Limbu Punch, is a prominent player in India’s country liquor market.
On a sequential basis, the company’s profit increased marginally from Rs 38 crore reported in Q1 FY27, while revenue rose from Rs 200 crore in the June quarter.
In Q1 FY27, GM Breweries had reported a 46 per cent year-on-year increase in net profit and a 23 per cent rise in revenue, as per its regulatory filing.
The latest decline adds to the pressure on the stock, which has already corrected significantly from its recent high. Before Thursday’s session, GM Breweries shares had fallen around 25 per cent from their 52-week high of Rs 1,328.80 and were down about 22 per cent so far this year.
