Revenue jumps 63.20%, but higher costs cut margin to 6.30%
Standalone expenses rose 75.43% QoQ against 63.20% revenue growth, while other income equalled 167.61% of pre-tax profit.
Filed 05 Nov 2026, 20:12 IST · after market close · Ambica Agarbathies Aroma & Industries Ltd (AMBICAAGAR)
Key takeaways
- Standalone revenue rose 63.20% QoQ, but expenses grew 75.43%, cutting operating margin by 6.51 percentage points.
- Operating margin at 6.30% was 4.39 percentage points below the 10.69% median for 62 reported FMCG peers.
- Other income contributed 167.61% of pre-tax profit, while net profit fell 3.60% QoQ to Rs 1.07 cr.
Price around the results
Revenue growth did not reach operating profit
Ambica Agarbathies reported standalone revenue growth of 63.20% QoQ in Q2FY27, but operating profit fell 19.62% and net profit declined 3.60%. Pre-tax profit also fell 4.05%, despite interest costs declining 5.67% QoQ. The result shows that the sharp revenue increase did not translate into earnings growth.
Faster expense growth compressed margins
Expenses grew 75.43% QoQ, faster than revenue, reducing operating margin from 12.81% in Q1FY27 to 6.30%, a 6.51 percentage-point decline. Depreciation was unchanged, while the tax rate eased by 0.34 percentage points to 24.83%. Other income of Rs 2.38 cr represented 167.61% of pre-tax profit, making reported profit quality dependent on income outside operations.
Margin trailed most reported FMCG peers
The company's 6.30% operating margin was 4.39 percentage points below the 10.69% median among 62 FMCG peers that had reported the same quarter. Ambica Agarbathies ranked 19th from the bottom on this measure. Sequentially, margin declined from 12.81% in Q1FY27, but a longer multi-quarter direction is not established by the available comparison.
Results were filed after market close
The standalone results were filed after market close on 05 Nov 2026 at 20:12 IST. The immediate market response is therefore not covered here.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹40 cr | ₹25 cr | +63.20% |
| Other income | ₹2 cr | ₹2 cr | +20.20% |
| Expenses | ₹38 cr | ₹21 cr | +75.43% |
| Operating profit | ₹3 cr | ₹3 cr | -19.62% |
| Operating margin (%) | 6.30% | 12.81% | — |
| Interest | ₹3 cr | ₹3 cr | -5.67% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹1 cr | ₹1 cr | -4.05% |
| Tax | ₹0 cr | ₹0 cr | -5.41% |
| Net profit | ₹1 cr | ₹1 cr | -3.60% |
| EPS (₹) | ₹0.57 | ₹0.64 | -10.94% |
Operating margin of 6.30% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.63% | -3.64% |
Volume on the results session was 0.03× its 20-day average.
What to watch
- Whether operating margin recovers from 6.30% after the 6.51 percentage-point QoQ decline.
- Whether expense growth falls below the 63.20% revenue growth recorded in Q2FY27.
- Whether other income remains a significant contributor after representing 167.61% of pre-tax profit.