Asahi India’s margin reaches 22.98% as costs lag revenue growth
Revenue rose 15.03% year on year while expenses grew 5.04%, lifting operating profit; lower interest also supported the 172.09% rise in net profit.
Filed 05 Aug 2026, 13:21 IST · Asahi India Glass Ltd (ASAHIINDIA)
Key takeaways
- Consolidated operating margin expanded 7.33 percentage points year on year to 22.98% as expenses grew 5.04% against 15.03% revenue growth.
- Net profit rose 172.09% year on year, helped by a 21.22% fall in interest and a 1.26 percentage-point lower tax rate, while other income contributed only 2.72% of pre-tax profit.
- The 22.98% margin was 9.68 percentage points above the 13.30% median for 90 reported Consumer Discretionary peers.
Price around the results
Revenue growth widened operating leverage
Asahi India Glass reported consolidated revenue growth of 15.03% year on year and 4.38% quarter on quarter, while expenses rose only 5.04% and 2.00%, respectively. That gap lifted operating profit by 68.87% year on year and 13.26% sequentially. Operating margin expanded 7.33 percentage points year on year and 1.80 percentage points from the previous quarter.
Interest and tax improved profit conversion
The 21.22% year-on-year decline in interest expense helped profit before tax grow 167.45%, despite depreciation rising 19.09%. The tax rate fell 1.26 percentage points year on year, which also flattered net profit growth, although it rose 0.26 percentage points sequentially. Other income fell 48.46% year on year and contributed only 2.72% of pre-tax profit, so it was not a material driver of earnings quality.
Operating margin has risen for four straight quarters
The consolidated operating margin has increased in every quarter-on-quarter comparison since Q1FY26, from 15.65% to 22.98% in Q1FY27. The latest margin also stood 9.68 percentage points above the 13.30% median for 90 Consumer Discretionary peers that had reported the quarter. This places the quarter’s margin expansion in a broader upward trend rather than as a one-quarter move.
Past result reactions have been mixed
There is no post-results price move to assess yet. In the stock’s last eight result reactions, it rose five times and fell three times, with a median absolute move of 2.08%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,413 cr | ₹1,354 cr | +4.38% | +15.03% |
| Other income | ₹6 cr | ₹10 cr | -42.08% | -48.46% |
| Expenses | ₹1,089 cr | ₹1,067 cr | +2.00% | +5.04% |
| Operating profit | ₹325 cr | ₹287 cr | +13.26% | +68.87% |
| Operating margin (%) | 22.98% | 21.18% | — | — |
| Interest | ₹47 cr | ₹42 cr | +11.69% | -21.22% |
| Depreciation | ₹81 cr | ₹75 cr | +8.15% | +19.09% |
| Profit before tax | ₹203 cr | ₹180 cr | +12.82% | +167.45% |
| Tax | ₹54 cr | ₹47 cr | +13.95% | +155.34% |
| Net profit | ₹149 cr | ₹133 cr | +12.42% | +172.09% |
| EPS (₹) | ₹5.85 | ₹5.20 | +12.50% | +153.25% |
Operating margin of 22.98% compares with a Consumer Discretionary sector median of 13.30% across 90 peers that have reported Q1FY27.
What to watch
- Whether consolidated operating margin holds above 22.98%.
- Whether expenses continue to grow slower than revenue, against the latest 5.04% versus 15.03% comparison.
- Whether interest expense reverses its latest 11.69% quarter-on-quarter increase and how the 26.43% tax rate evolves.