GM Breweries Q2 Results: Stock surges over 13% after strong revenue growth, margin expansion

GM Breweries Ltd. shares surged as much as 14% on Thursday, October 9, in response to its quarterly results for the July-September period.

The liquor manufacturer's net profit increased by 59% from the same quarter last year to ₹35 crore from ₹22 crore.

Topline Growth, Margin Expansion In Q2

GM Breweries reported a 22% growth in its topline for the September quarter to ₹181 crore. The company had reported revenue of ₹149 crore during the same quarter last year.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 61% on a year-on-year basis to ₹45 crore from ₹28 crore in the year-ago period.

EBITDA margins expanded by over 600 basis points during the quarter to 24.9% from 18.8% in the base quarter.

GM Breweries is one of the largest players in India's country liquor market.

Stock Price Reaction

The stock price surged as much as 14% in response to the earnings announcement.

Shares of GM Breweries are now trading 14% higher on Thursday at ₹871.05. The stock is up 26% in the last one month, and as a result of this surge, the stock has also turned positive on a year-to-date basis.