Harshdeep Hortico misses internal revenue target, flags cost spike
Revenue of ₹69 cr fell short of ₹85 cr internal guidance; raw material costs surged 60%.
What's new
- Revenue miss: ₹69 cr vs ₹85 cr internal guidance, blamed on LPG supply disruption.
- Raw material costs rose 60% year-on-year, pressuring margins.
- Management guided 25-30% revenue growth for FY27, driven by new products and exports.
Why it matters
The miss against internal guidance raises questions about forecasting reliability, especially given the sharp cost inflation. The 25-30% FY27 growth target implies a steep recovery; credibility hinges on execution in new verticals like eco-series exports.
What we're watching
- Q1FY27 revenue trajectory and margin recovery.
- Update on LPG supply normalization and cost pass-through.
- Order inflows for fountains and shade nets—key growth drivers.
The full read
Harshdeep Hortico's FY26 revenue of ₹69 crore fell ₹16 crore short of its internal target of ₹85 crore, a miss management attributes to a six-week LPG supply disruption that hampered production and a 60% jump in raw material costs. The nano-cap posted a subdued concall, with margin details already disclosed. To regain momentum, the company targets 25-30% growth in FY27, betting on new product verticals—fountains, shade nets, and eco-series exports—which remain small but are scaling. The open question is whether demand can absorb cost pressures and whether the growth guidance, ambitious against a miss, holds up.