Sundrop Brands Q2 FY27 Revenue Up 21% to ₹463.1 Cr, Normalized EBITDA Margin at 6.4%
Sundrop Brands reported Q2 FY27 revenue of ₹463.1 crore, up 21% YoY. Normalized EBITDA margin improved to 6.4%. E-commerce revenue grew 43% YoY. The company launched 24 new products and saw strong performance across its ACT II, Sundrop, and Del Monte brands.
The substantial year-on-year revenue growth, improved profitability margins, and positive outlook presented in the investor presentation are material factors that are likely to positively influence investor perception and market valuation.
The company reported strong revenue growth, significant improvement in normalized EBITDA margin, and robust performance across its key brands and channels, indicating positive financial health and operational efficiency.
Sundrop Brands Limited (formerly Agro Tech Foods Limited) announced its Unaudited Financial Results for the second quarter and half-year ended September 30, 2026. The company reported a significant 21% year-on-year increase in revenue from operations for Q2 FY27, reaching ₹463.1 crore, compared to ₹383.3 crore in Q2 FY26. For the half-year ended September 30, 2026 (H1 FY27), revenue grew by 18% year-on-year to ₹891.2 crore.
The company's B2C business saw a 18% growth in H1 FY27, while e-commerce revenue surged by 43% YoY in Q2 FY27 and 38% YoY in H1 FY27. Normalized EBITDA for Q2 FY27 increased by 90% to ₹229.5 crore, with the normalized EBITDA margin improving by 240 basis points to 6.4%. For H1 FY27, normalized EBITDA saw an 86% rise to ₹59.3 crore, and the margin stood at 6.6%.
Management commentary highlighted focused investment and execution on winning models behind core categories, which constitute over 60% of sales. The company completed its sales force automation as per plan and launched 24 new products in Q2 FY27. Gross margins expanded by 19% YoY to ₹106.8 crore, supported by manufacturing and logistics efficiencies, despite inflationary input costs.
The investor presentation detailed performance across its brands: ACT II, Sundrop, Del Monte (Italian and Culinary), and Spreads. ACT II saw strong value and volume growth in both RTC and RTE segments. The Sundrop brand focused on staples growth and oats extension, while Spreads navigated challenges with portfolio expansion and digital-led growth. The Del Monte Italian segment showed recovery driven by e-commerce and foodservice, and Culinary delivered strong growth supported by B2B momentum.
Sundrop Brands emphasized its diversified, omnichannel route-to-market strategy, with e-commerce emerging as a core growth engine, contributing over 19% to group sales in Q2 FY27. Sales force automation has been completed, focusing on enhancing range, depth, and coverage economics in general trade.
The company is prioritizing investments in high-growth, high-penetration, and value-accretive categories, with A&P investments exceeding ₹26 crore in Q2 FY27. Innovation is highlighted as a significant growth engine, with over 120 new launches in the last two years contributing ₹55 crore in sales in H1 FY27.
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