Allied Blenders’ shares tumbled 4% on the NSE after the company announced that its Q2 net profit slid 32% year‑on‑year to ₹101 crore, a hit that left investors scrambling for explanations.
Revenue also slipped 2.4%, closing at ₹5,612 crore, down from ₹5,772 crore in the prior quarter, while EBITDA fell 15.6% to ₹351 crore, signalling a tightening in the company’s earnings buffer.
But the big question is why the margin compression happened. Operating costs, largely driven by raw‑material prices, outpaced revenue growth, squeezing the company’s profit floor.
And yet, Allied Blenders’ management hinted at a restructuring plan that could curb costs by 5% next quarter, a move that may help restore the EBITDA margin to pre‑crisis levels.
Looking ahead, the firm will report its Q3 results on 15 November, and analysts will be watching for any turn‑around in the FMCG sector’s broader rebound, which could lift Allied Blenders’ valuation.
In the meantime, the stock’s 52‑week high remains at ₹1,200, a reminder that even a profit slump can coexist with bullish long‑term sentiment in the market.