Bannari Amman Sugars swings to profit as operating margin rebounds
Revenue rose +97.29% QoQ while expenses grew +65.98%, though other income still accounted for 29.77% of pre-tax profit.
Filed 11 Nov 2026, 11:40 IST · Bannari Amman Sugars Ltd (BANARISUG)
Key takeaways
- Standalone revenue rose 97.29% sequentially, while expenses increased 65.98%, turning operating profit from a Rs 5.17 cr loss into Rs 45.41 cr.
- Operating margin expanded 16.35 percentage points to 13.35% as revenue growth outpaced expense growth.
- Other income contributed 29.77% of pre-tax profit, making it a material part of the Rs 30.95 cr net profit.
Price around the results
Q2 marks a sharp sequential turnaround
Bannari Amman Sugars reported standalone revenue growth of 97.29% from Q1FY27, while expenses rose 65.98%. That operating leverage moved the company from a Rs 5.17 cr operating loss in Q1FY27 to Rs 45.41 cr of operating profit in Q2FY27. Pre-tax profit also swung from a Rs 14.46 cr loss to Rs 41.99 cr.
Costs supported the margin recovery, but profit quality needs tracking
Because expenses grew more slowly than revenue, operating margin widened by 16.35 percentage points. Interest expense fell 31.43% sequentially, partly offset by a 5.23% increase in depreciation, while the tax rate rose 1.76 percentage points rather than flattering the profit increase. Other income accounted for 29.77% of pre-tax profit, so it was a significant contributor to earnings.
Margin is above the reported FMCG peer median
The company's 13.35% operating margin was 2.66 percentage points above the 10.69% median for 68 Fast Moving Consumer Goods peers that had reported the same quarter. The quarter is a sequential recovery from Q1FY27's negative 3.00% operating margin, rather than evidence of a multi-quarter margin trend.
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 | ₹340 cr | ₹172 cr | +97.29% |
| Other income | ₹13 cr | ₹6 cr | +109.38% |
| Expenses | ₹295 cr | ₹178 cr | +65.98% |
| Operating profit | ₹45 cr | ₹-5 cr | — |
| Operating margin (%) | 13.35% | -3.00% | — |
| Interest | ₹0 cr | ₹0 cr | -31.43% |
| Depreciation | ₹16 cr | ₹15 cr | +5.23% |
| Profit before tax | ₹42 cr | ₹-14 cr | — |
| Tax | ₹11 cr | ₹-4 cr | — |
| Net profit | ₹31 cr | ₹-11 cr | — |
| EPS (₹) | ₹24.68 | ₹-8.70 | — |
Operating margin of 13.35% 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 13.35% after the Q2 recovery.
- Whether other income remains a material share of pre-tax profit relative to 29.77%.
- Whether revenue growth can stay near the 97.29% sequential increase without expenses accelerating from 65.98%.