Apex operating margin falls 6.92 points as costs outpace sales
Standalone profit fell 90.22% QoQ as expenses grew more than twice as fast as revenue and the tax rate increased to 43.62%.
Filed 12 Nov 2026, 17:28 IST · after market close · Apex Frozen Foods Ltd (APEX)
Key takeaways
- Apex’s standalone operating margin fell 6.92 percentage points QoQ to 4.87% as expenses grew 15.07% against revenue growth of 6.7%.
- Standalone net profit fell 90.22% QoQ to Rs 2.12 cr as the tax rate rose 19.4 percentage points and other income turned negative at Rs -4.99 cr.
- Apex’s 4.87% operating margin was 5.82 percentage points below the 10.69% median for 74 reported FMCG peers.
Price around the results
Expenses erased sequential operating leverage
Standalone revenue rose 6.7% QoQ to Rs 273.71 cr, but expenses increased 15.07% to Rs 260.39 cr. The faster cost growth cut operating profit 55.97% to Rs 13.32 cr and narrowed the operating margin from 11.79% to 4.87%.
Negative other income deepened the profit squeeze
Other income was Rs -4.99 cr, equivalent to -133.07% of profit before tax, rather than the Rs 2.78 cr reported in Q1FY27. Interest expense also rose 60.0% QoQ, while the tax rate increased from 24.22% to 43.62%, contributing to the 86.88% fall in profit before tax and the 90.22% decline in net profit.
Margin trails the FMCG peer median
Apex’s 4.87% operating margin was 5.82 percentage points below the 10.69% median among 74 FMCG peers that had reported the quarter. Compared with Q1FY27, this was a sharp sequential deterioration; the available trend shows the margin moving from 11.79% to 4.87%.
Results were filed after market close
The company filed its standalone Q2FY27 results after market close on 12 November 2026. There is therefore no market reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹274 cr | ₹257 cr | +6.70% |
| Other income | ₹-5 cr | ₹3 cr | — |
| Expenses | ₹260 cr | ₹226 cr | +15.07% |
| Operating profit | ₹13 cr | ₹30 cr | -55.97% |
| Operating margin (%) | 4.87% | 11.79% | — |
| Interest | ₹0 cr | ₹0 cr | +60.00% |
| Depreciation | ₹4 cr | ₹4 cr | -0.24% |
| Profit before tax | ₹4 cr | ₹29 cr | -86.88% |
| Tax | ₹2 cr | ₹7 cr | -76.30% |
| Net profit | ₹2 cr | ₹22 cr | -90.22% |
| EPS (₹) | ₹0.68 | ₹6.93 | -90.19% |
Operating margin of 4.87% compares with a Fast Moving Consumer Goods sector median of 10.69% across 74 peers that have reported Q2FY27.
What to watch
- Whether expenses growth moderates from 15.07% QoQ relative to revenue growth of 6.7%.
- Whether operating margin holds above 4.87% and narrows the 5.82-percentage-point gap with the peer median.
- Whether other income remains negative after the Rs -4.99 cr reported in Q2FY27.