Avadh Sugar's profit jumps as lower interest offsets a revenue drop
Standalone operating margin improved sequentially, but other income made up 26.6% of pre-tax profit and margins remained below the sector median.
Filed 05 Nov 2026, 14:10 IST · Avadh Sugar & Energy Ltd (AVADHSUGAR)
Key takeaways
- Standalone revenue fell 16.38% sequentially, but expenses fell faster at 17.42%, lifting operating margin by 1.18 percentage points.
- Net profit rose to Rs 10.04 cr from Rs 0.23 cr as interest costs fell 40.99% and the tax rate declined 15.3 percentage points.
- Other income contributed 26.6% of pre-tax profit, while the 5.86% operating margin was 4.83 percentage points below the 62-peer sector median.
Price around the results
Revenue fell, but operating profit still rose
Avadh Sugar's standalone revenue declined 16.38% sequentially to Rs 651.57 cr, while operating profit increased 4.75% to Rs 38.18 cr. Expenses contracted faster than revenue, down 17.42%, which lifted operating margin from 4.68% to 5.86%. This was an improvement over Q1FY27, though the available quarter trend does not yet establish a sustained direction.
Lower interest costs drove the profit improvement
Interest expense fell 40.99% sequentially to Rs 13.16 cr, helping pre-tax profit rise from Rs 0.37 cr to Rs 12.67 cr despite the revenue decline. The tax rate also fell from 36.04% to 20.74%, adding to the increase in net profit. Other income accounted for 26.6% of pre-tax profit, so reported earnings were not entirely generated by operations.
Margin remains below the reported FMCG peer median
Avadh Sugar's 5.86% operating margin was 4.83 percentage points below the 10.69% median for the 62 Fast Moving Consumer Goods peers that had reported. Its margin rank was 18th from the bottom, leaving a clear gap versus the reported sector comparison.
No post-results market reaction is covered
The results were filed on 05 Nov 2026 at 14:10 IST, and no post-results stock reaction is included here. The quarter therefore needs to be assessed mainly through the operating improvement, lower interest burden and the quality of pre-tax profit.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹652 cr | ₹779 cr | -16.38% |
| Other income | ₹3 cr | ₹2 cr | +87.22% |
| Expenses | ₹613 cr | ₹743 cr | -17.42% |
| Operating profit | ₹38 cr | ₹36 cr | +4.75% |
| Operating margin (%) | 5.86% | 4.68% | — |
| Interest | ₹13 cr | ₹22 cr | -40.99% |
| Depreciation | ₹16 cr | ₹16 cr | +0.90% |
| Profit before tax | ₹13 cr | ₹0 cr | +3324.32% |
| Tax | ₹3 cr | ₹0 cr | +1923.08% |
| Net profit | ₹10 cr | ₹0 cr | +4265.22% |
| EPS (₹) | ₹5.01 | ₹0.12 | +4075.00% |
Operating margin of 5.86% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
What to watch
- Whether revenue moves up from Rs 651.57 cr in the next quarter.
- Whether operating margin holds above 5.86%.
- Whether interest expense remains below Rs 13.16 cr and the tax rate below 20.74%.