ADF Foods expands margin as revenue growth outpaces expenses
Consolidated revenue rose +20.10% QoQ, while other income contributed 11.66% of pre-tax profit and the tax rate moved higher.
Filed 05 Nov 2026, 19:08 IST · after market close · ADF Foods Ltd (ADFFOODS)
Key takeaways
- Consolidated operating margin rose 1.67 percentage points QoQ to 19.40% as revenue growth of +20.10% outpaced expense growth of +17.66%.
- Net profit increased +46.56% QoQ to Rs 25.34 cr despite a 2.37-percentage-point increase in the tax rate to 28.78%.
- Other income accounted for 11.66% of consolidated pre-tax profit, making it a meaningful contributor to reported earnings.
Price around the results
Revenue growth outpaced the cost base
ADF Foods reported consolidated revenue of Rs 200.91 cr, up +20.10% QoQ, while expenses increased +17.66% to Rs 161.94 cr. The faster revenue growth lifted operating profit by +31.39% to Rs 38.97 cr. This points to better operating leverage in Q2FY27 than in Q1FY27.
Margin improved, but other income aided profit
Operating margin expanded 1.67 percentage points QoQ to 19.40% because expenses grew slower than revenue. Interest expense still rose +26.09%, while the tax rate increased 2.37 percentage points to 28.78%. Other income of Rs 4.15 cr contributed 11.66% of pre-tax profit, so net profit growth was not driven by operations alone.
Margin moved above the reported FMCG peer median
The quarter-on-quarter comparison shows operating margin improving from 17.73% in Q1FY27 to 19.40% in Q2FY27. ADF Foods' margin was 8.71 percentage points above the 10.69% median for the 62 Fast Moving Consumer Goods peers that had reported the same quarter.
Results were filed after market close
The consolidated results were filed after market close, so there is no post-results stock reaction to assess yet. The quarter's reported performance was led by revenue growth exceeding expense growth, alongside a higher contribution from other income.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹201 cr | ₹167 cr | +20.10% |
| Other income | ₹4 cr | ₹1 cr | +277.27% |
| Expenses | ₹162 cr | ₹138 cr | +17.66% |
| Operating profit | ₹39 cr | ₹30 cr | +31.39% |
| Operating margin (%) | 19.40% | 17.73% | — |
| Interest | ₹1 cr | ₹1 cr | +26.09% |
| Depreciation | ₹7 cr | ₹7 cr | +1.37% |
| Profit before tax | ₹36 cr | ₹23 cr | +51.47% |
| Tax | ₹10 cr | ₹6 cr | +65.16% |
| Net profit | ₹25 cr | ₹17 cr | +46.56% |
| EPS (₹) | ₹2.31 | ₹1.57 | +47.13% |
Operating margin of 19.40% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 19.40%.
- Whether expense growth remains below the +20.10% revenue growth rate seen this quarter.
- Whether other income remains a material share of pre-tax profit after contributing 11.66% in Q2FY27.