AVT Natural Products lifts margin despite a 9.85% sequential revenue decline
Expenses fell faster than revenue, but lower other income and a higher tax rate left net profit down 0.74% sequentially.
Filed 11 Nov 2026, 14:29 IST · AVT Natural Products Ltd (AVTNPL)
Key takeaways
- A 12.67% QoQ drop in expenses outpaced the 9.85% revenue decline, lifting operating margin by 2.60 percentage points to 19.16%.
- Net profit slipped 0.74% to Rs 30.87 cr despite operating profit rising 4.31%, as other income fell 52.34% and the tax rate rose 0.60 percentage points.
- AVT Natural Products' 19.16% operating margin was 8.47 percentage points above the 10.69% median of 68 reported FMCG peers.
Price around the results
Revenue fell, but operating profit rose
In consolidated Q2FY27, revenue declined 9.85% QoQ while expenses fell 12.67%, allowing operating profit to increase 4.31% to Rs 41.67 cr. The result was a cost-led improvement rather than a demand-led expansion.
Lower costs lifted margins, while profit quality softened
Operating margin widened by 2.60 percentage points because expenses contracted faster than revenue. Lower interest expense, down 34.38%, supported pre-tax profit, but the 52.34% fall in other income and a 0.60 percentage-point rise in the tax rate left net profit down 0.74% QoQ. Other income contributed 5.48% of pre-tax profit, so it was a limited but negative influence on earnings.
Margin stayed ahead of reported FMCG peers
The 19.16% operating margin was 8.47 percentage points above the 10.69% median for 68 FMCG peers that had reported the quarter. Against Q1FY27, revenue was lower but operating profit was higher, while pre-tax profit was unchanged at Rs 39.05 cr and net profit edged down.
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 | ₹217 cr | ₹241 cr | -9.85% |
| Other income | ₹2 cr | ₹4 cr | -52.34% |
| Expenses | ₹176 cr | ₹201 cr | -12.67% |
| Operating profit | ₹42 cr | ₹40 cr | +4.31% |
| Operating margin (%) | 19.16% | 16.56% | — |
| Interest | ₹1 cr | ₹2 cr | -34.38% |
| Depreciation | ₹3 cr | ₹3 cr | +4.11% |
| Profit before tax | ₹39 cr | ₹39 cr | +0.00% |
| Tax | ₹8 cr | ₹8 cr | +2.89% |
| Net profit | ₹31 cr | ₹31 cr | -0.74% |
| EPS (₹) | ₹2.03 | ₹2.04 | -0.49% |
Operating margin of 19.16% compares with a Fast Moving Consumer Goods sector median of 10.69% across 68 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 19.16% next quarter.
- Whether revenue reverses the 9.85% QoQ decline while expenses continue to grow more slowly than revenue.
- Whether other income remains a limited contributor to profit, after accounting for 5.48% of pre-tax profit.