Costs rose as revenue fell, cutting operating margin to 6.52%
Consolidated net profit fell 55.13% qoq as the margin narrowed 4.11 percentage points; the result was filed after market close.
Filed 12 Nov 2026, 18:17 IST · after market close · Associated Alcohols & Breweries Ltd (ASALCBR)
Key takeaways
- Consolidated revenue fell 3.28% qoq while expenses rose 1.18%, narrowing operating margin by 4.11 percentage points to 6.52%.
- Net profit fell 55.13% qoq to Rs 8.00 cr as profit before tax declined 54.22%; other income contributed 18.35% of PBT.
- Operating margin was 4.17 percentage points below the 10.69% median for 74 reported FMCG peers.
Price around the results
Q2 revenue softness exposed a cost mismatch
These consolidated results show revenue declining 3.28% qoq to Rs 271.65 cr, while expenses increased 1.18% to Rs 253.95 cr. Costs therefore grew as revenue contracted, cutting operating profit 40.72% and reducing operating margin by 4.11 percentage points to 6.52%. Lower interest expense, down 11.96%, did not offset the operating pressure.
Lower tax did not prevent a sharp profit decline
Profit before tax fell 54.22% qoq and net profit fell 55.13% to Rs 8.00 cr. The tax rate rose by 1.45 percentage points to 27.32%, adding to the pressure on earnings. Other income made up 18.35% of PBT, so reported profit also included a meaningful non-operating contribution.
Margin lagged the reported FMCG peer median
Associated Alcohols & Breweries' 6.52% operating margin was 4.17 percentage points below the 10.69% median among 74 FMCG companies that had reported the quarter. Sequentially, this was a sharp reversal from the 10.63% margin in Q1FY27; the available trend shows one quarter of comparison rather than a multi-quarter direction.
Market response is not yet available
The company filed these results after market close on 12 Nov 2026. The share-price response is therefore not included in this update.
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 | ₹272 cr | ₹281 cr | -3.28% |
| Other income | ₹2 cr | ₹3 cr | -34.84% |
| Expenses | ₹254 cr | ₹251 cr | +1.18% |
| Operating profit | ₹18 cr | ₹30 cr | -40.72% |
| Operating margin (%) | 6.52% | 10.63% | — |
| Interest | ₹2 cr | ₹2 cr | -11.96% |
| Depreciation | ₹7 cr | ₹7 cr | +0.28% |
| Profit before tax | ₹11 cr | ₹24 cr | -54.22% |
| Tax | ₹3 cr | ₹6 cr | -51.61% |
| Net profit | ₹8 cr | ₹18 cr | -55.13% |
| EPS (₹) | ₹3.99 | ₹8.88 | -55.07% |
Operating margin of 6.52% compares with a Fast Moving Consumer Goods sector median of 10.69% across 74 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 271.65 cr without expenses rising above Rs 253.95 cr.
- Whether operating margin moves back above 6.52% after the 4.11-percentage-point qoq decline.
- Whether other income remains a material contributor relative to the 18.35% share of PBT.