Megastar Foods Reports Significant Sales Growth Amid Rising Interest Expenses

Megastar Foods, a microcap player in the FMCG sector, has recently undergone a financial trend adjustment reflecting its improved performance metrics for the quarter ending June 2025. The company reported net sales of Rs 228.72 crore over the last six months, showcasing a significant growth rate of 91.30%. This surge in sales has contributed to the highest recorded profit before tax (PBT) of Rs 2.10 crore and a profit after tax (PAT) of Rs 1.62 crore, with earnings per share (EPS) reaching Rs 1.43.
However, not all aspects of the company's financial health are positive. Interest expenses have also risen, amounting to Rs 8.11 crore, which reflects a growth of 48.53%. This increase in interest could pose challenges for future profitability.

In terms of market performance, Megastar Foods has experienced varied returns compared to the Sensex. While the stock has shown a year-to-date return of 17.91%, it has faced declines over shorter periods, including a 4.73% drop over the past month. Notably, the company has outperformed the Sensex over a three-year horizon, with a return of 48.76% compared to the index's 37.95%. Over five years, Megastar Foods has delivered an impressive return of 560.76%, significantly surpassing the Sensex's 111.82%.