Asahi India’s margin stays above 21% despite a sequential squeeze
Revenue growth outpaced costs sharply YoY, but expenses grew faster than sales sequentially and pulled operating margin down 1.15 percentage points.
Filed 03 Nov 2026, 13:36 IST · Asahi India Glass Ltd (ASAHIINDIA)
Key takeaways
- Consolidated revenue grew 37.75% YoY while expenses rose 28.72%, lifting operating margin by 5.48 percentage points to 21.83%.
- Net profit rose 187.47% YoY to Rs 167.28 cr despite an 8.68 percentage-point increase in the tax rate.
- The stock rose 5.55% on results day, above its 3.02% median absolute move after the past eight results.
Price around the results
Q2FY27 earnings benefited from operating leverage
In the consolidated results, the 37.75% YoY increase in revenue outpaced the 28.72% rise in expenses, driving the 5.48 percentage-point expansion in operating margin. Lower interest costs, down 24.92% YoY, also supported the 221.28% increase in profit before tax, despite depreciation rising 16.48%. Other income contributed 2.42% of pre-tax profit, so non-operating income was not a major earnings driver.
Sequential margin expansion paused after four quarters
Revenue grew 12.20% QoQ, but expenses increased 13.87%, so operating margin narrowed by 1.15 percentage points to 21.83%. A 4.49% decline in interest costs and a 0.21 percentage-point reduction in the tax rate helped net profit still rise 12.21% QoQ. Margin had increased from 15.65% in Q1FY26 to 22.98% in Q1FY27, making this the first sequential decline in that run.
Operating margin remains above the reported peer median
Asahi India’s 21.83% operating margin was 9.60 percentage points above the 12.23% median for the 188 Consumer Discretionary peers that had reported the same quarter. This places the company well above the sector comparison despite the sequential margin pullback.
Results-day reaction was larger than the stock’s usual move
The stock gained 5.55% on results day, compared with a 3.02% median absolute move after its past eight results. The direction was consistent with its history: six of those eight post-results moves were positive and two were negative.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,586 cr | ₹1,413 cr | +12.20% | +37.75% |
| Other income | ₹5 cr | ₹6 cr | -0.72% | -48.93% |
| Expenses | ₹1,240 cr | ₹1,089 cr | +13.87% | +28.72% |
| Operating profit | ₹346 cr | ₹325 cr | +6.60% | +83.91% |
| Operating margin (%) | 21.83% | 22.98% | — | — |
| Interest | ₹45 cr | ₹47 cr | -4.49% | -24.92% |
| Depreciation | ₹80 cr | ₹81 cr | -0.70% | +16.48% |
| Profit before tax | ₹227 cr | ₹203 cr | +11.88% | +221.28% |
| Tax | ₹59 cr | ₹54 cr | +10.98% | +380.21% |
| Net profit | ₹167 cr | ₹149 cr | +12.21% | +187.47% |
| EPS (₹) | ₹6.56 | ₹5.85 | +12.14% | +195.50% |
Operating margin of 21.83% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.55% | +3.98% |
Volume on the results session was 20.62× its 20-day average.
What to watch
- Whether operating margin recovers from 21.83% after the 1.15 percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after rising 13.87% versus 12.20% QoQ.
- Whether the tax rate remains near 26.22% after increasing 8.68 percentage points YoY.