Leading basmati rice producer and owner of the India Gate brand, KRBL Ltd, on Monday (November 2) reported a 50.4% year-on-year increase in net profit to ₹259 crore for the second quarter of FY27, compared to ₹172 crore in the corresponding quarter last year.
Profit before tax (PBT) rose 50% to ₹349 crore from ₹233 crore. Revenue from operations rose 14.3% to ₹1,727.4 crore in Q2FY27 from ₹1,511.1 crore in the year-ago period. The total income increased 15% to ₹1,768 crore from ₹1,541 crore.
EBITDA increased 46.7% year-on-year to ₹332.2 crore from ₹226.5 crore. The EBITDA margin expanded to 19% in the reporting quarter from 15% in Q2FY26.
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Gross profit increased 35% to ₹609 crore from ₹450 crore, with the gross profit margin improving to 34.5% from 29.2%. The company attributed the increase in gross margin to higher prices, a better sales mix and higher other income.
EBITDA followed the gross margin trend, partly offset by a higher proportion of other expenses. The profit after tax (PAT) margin also moved in line with EBITDA.
H1FY27 Performance
For the first half of FY27, KRBL reported a 4% year-on-year increase in revenue from operations to ₹3,223 crore from ₹3,095 crore. Total income rose 6% to ₹3,329 crore from ₹3,155 crore.
EBITDA increased 55% to ₹745 crore from ₹482 crore, while the EBITDA margin expanded to 22.4% from 15.3%. Profit before tax rose 61% to ₹697 crore from ₹434 crore, and net profit increased 61% to ₹520 crore from ₹323 crore. Gross profit grew 36% to ₹1,175 crore from ₹862 crore, with the gross profit margin rising to 35.3% from 27.3%.
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Domestic Revenue Hits Record High
KRBL’s domestic business recorded its highest-ever quarterly revenue in Q2FY27, rising 33% year-on-year to ₹1,390 crore. The company attributed the growth to higher volumes and realisations. Domestic revenue accounted for the increase in overall quarterly revenue, partly offset by lower export revenue.
KRBL retained its market leadership in packaged basmati rice, with a 36.2% market share in general trade and 39.6% in modern trade as of September 2026. Its e-commerce market share stood at 41.1%, based on the company’s internal numbers for September 2026.
The company has a presence across 3.3 lakh retail outlets and reaches 1.2 crore Indian households. Its domestic distribution network is supported by more than 850 distributors, while its products are exported to over 90 countries. KRBL’s household reach figure is based on the Kantar Household Panel for June 2026 across 13 major urban markets.
Exports Decline 31%
Export revenue declined 31% year-on-year to ₹297 crore in Q2FY27. KRBL attributed the decline to lower exports to the Middle East region. The Middle East accounts for nearly three-fourths of India’s basmati rice exports. According to the company’s presentation, India is the world’s largest rice exporter and accounts for 85% of global basmati exports. India’s basmati rice export volume grew 8% in FY26.
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KRBL said global markets offer opportunities for growth, supported by higher-yielding varieties, adoption of farming technology and rising demand for quality basmati rice.
It also cited growing demand for PUSA basmati in the US, the popularity of Indian rice among the diaspora and local consumers overseas, and demand for Indian basmati in international markets.
The company’s export strategy includes expanding existing markets, entering new and seeded markets, launching economy variants and smaller packs, diversifying consumer channels and deepening distribution.
It is also focusing on direct marketing, including Arabic television advertising in mainstream channels, geo-location-based social media targeting and expanding its India Gate HORECA product range.
KRBL reported cash and bank balances of ₹2,895 crore as of September 30, 2026, while net bank borrowings stood at negative ₹2,895 crore. Net worth stood at ₹6,229 crore and total inventory was ₹2,203 crore.
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The company’s total inventory as of September 30, 2026, was ₹2,203 crore, compared with ₹2,279 crore a year earlier. KRBL said its net bank debt was lower mainly due to reduced net working capital and internal accruals.
Shares of KRBL Ltd ended at ₹362.15, up by ₹17.25, or 5.00%, on the BSE.