Are Megastar Foods latest results good or bad?

Aug 06 2025 07:31 PM IST
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Megastar Foods' latest results show strong year-on-year growth in net sales and profits, but a decline in quarterly sales and operating profit indicates some operational challenges. Overall, the performance is mixed, reflecting both positive trends and areas of concern.
Megastar Foods has reported its financial results for the quarter ending June 2025, highlighting several key operational trends. The company achieved net sales of Rs 228.72 crore over the last six months, reflecting a year-on-year growth of 91.30%, indicating strong demand for its products. Profit before tax (PBT) reached Rs 2.10 crore, marking the highest figure in the last five quarters, while profit after tax (PAT) also peaked at Rs 1.62 crore during this period. Earnings per share (EPS) stood at Rs 1.43, the highest in five quarters, suggesting enhanced profitability for shareholders.

However, the quarterly results also revealed a decline in net sales on a quarter-on-quarter basis, with a decrease of 11.57% compared to the previous quarter. Similarly, the consolidated net profit showed a quarter-on-quarter growth of 23.66%, which is lower than the previous quarter's growth rate. Operating profit (PBDIT) experienced a decline of 30.10%, indicating challenges in maintaining operational efficiency. Additionally, interest expenses rose to Rs 8.11 crore, reflecting a 48.53% increase compared to the previous half-year period, suggesting that the company has taken on additional borrowings.

Overall, Megastar Foods has seen a revision in its evaluation, reflecting the mixed performance across different financial metrics.
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