Expenses outpaced revenue, cutting Asahi Songwon's margin by 4.53 points
Consolidated revenue grew 6.59% QoQ, but faster cost growth reduced operating profit by 22.08% and net profit by 21.76%.
Filed 12 Nov 2026, 13:38 IST · ASAHISONG (ASAHISONG)
Key takeaways
- Expenses rose 12.40% QoQ against 6.59% revenue growth, cutting operating margin by 4.53 percentage points to 12.31%.
- Net profit fell 21.76% QoQ to Rs 14.89 cr even as interest expense declined 11.63%.
- Other income contributed 10.89% of pre-tax profit, while the tax rate rose 0.63 percentage points to 25.58%.
Revenue growth failed to convert into operating profit
Asahi Songwon's consolidated revenue increased 6.59% QoQ to Rs 201.36 cr, but operating profit fell 22.08% to Rs 24.78 cr. The gap indicates that the quarter's incremental revenue came with a materially higher cost burden.
Cost growth drove the 4.53-point margin decline
Expenses rose 12.40% QoQ, nearly twice as fast as revenue, reducing operating margin from 16.84% to 12.31%. Lower interest expense, down 11.63%, did not offset the operating pressure; depreciation was broadly unchanged, rising 0.21%.
Other income supported pre-tax profit as tax rate edged up
Other income rose 175.95% QoQ to Rs 2.18 cr and accounted for 10.89% of pre-tax profit, making it a meaningful contributor to reported earnings. The tax rate increased 0.63 percentage points to 25.58%, so tax did not provide a benefit to net profit in the quarter.
Sequential direction turned weaker after Q1FY27
The available sequential trend shows operating margin falling from 16.84% in Q1FY27 to 12.31% in Q2FY27. Net profit also declined from Rs 19.03 cr to Rs 14.89 cr, despite revenue rising from Rs 188.91 cr to Rs 201.36 cr.
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 | ₹189 cr | +6.59% |
| Other income | ₹2 cr | ₹1 cr | +175.95% |
| Expenses | ₹177 cr | ₹157 cr | +12.40% |
| Operating profit | ₹25 cr | ₹32 cr | -22.08% |
| Operating margin (%) | 12.31% | 16.84% | — |
| Interest | ₹2 cr | ₹3 cr | -11.63% |
| Depreciation | ₹5 cr | ₹5 cr | +0.21% |
| Profit before tax | ₹20 cr | ₹25 cr | -21.07% |
| Tax | ₹5 cr | ₹6 cr | -18.99% |
| Net profit | ₹15 cr | ₹19 cr | -21.76% |
| EPS (₹) | ₹12.78 | ₹16.32 | -21.69% |
What to watch
- Whether operating margin recovers from 12.31% after the 4.53-percentage-point QoQ decline.
- Whether expense growth moderates from 12.40% to closer to revenue growth of 6.59%.
- Whether other income remains a material contributor after accounting for 10.89% of pre-tax profit.