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ABDL Q1FY27 operating performance was in-line with our expectation

ICICIdirect Research 24 Jul 2026 DISCLAIMER

News: ABDL Q1FY27 operating performance was in-line with our expectation. Its consolidated revenues grew by 6% YoY to Rs978.9cr (3% lower than our expectation of Rs1,009cr) driven by 16% growth in the P&A segment while regular brand revenues stood flat. P&A segment volumes grew by 11.4% YoY to 4.4mn cases (our expectation of 4.6mn cases) on a high base of 48% YoY volume growth in Q1FY26. Its salience to overall revenues improved by 500bps YoY to 57.2%. Slight miss on the revenues was largely on account of lower other revenues which decreased by 41% YoY to Rs35cr. Despite global supply chain disruption, favourable input cost environment and backward integration benefits led to a 277bps to 46.0%. Planned investment in people and core brands led to 30bps YoY decline in the EBITDA margins to 11.8%. EBITDA grew by 3.5% YoY to Rs115.5cr. Lower other income and higher depreciation charges led to 19% decline in the adjusted PAT to Rs45cr.

View: In Q1FY27, global supply disruption led impact on the EBITDA margins was around Rs24cr. Excluding it the EBITDA margins would have improved by 210 BPS YoY to 14.2%. PAT would have been around Rs63cr.  Operating cash flow stood at Rs174cr; Net debt reduced by Rs33cr in Q1FY27. Though global disruption might continue to impact margins in the near term, UK FTA and backward integration benefits would mitigate the impact and would help margins to recover in H2. Management maintained its thrust on premiumisation strategy and improved margin trajectory by FY28.

Impact: Neutral

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