Bikaji margin rebounds sequentially but stays below year-ago level
Costs grew faster than revenue year on year, while other income contributed 16.27% of pre-tax profit.
Filed 05 Aug 2026, 19:45 IST · after market close · Bikaji Foods International Ltd (BIKAJI)
Key takeaways
- Consolidated operating margin rose 1.31 percentage points sequentially to 13.48% as revenue grew faster than expenses.
- Year-on-year revenue growth of 12.50% lagged expense growth of 14.17%, narrowing operating margin by 1.27 percentage points.
- Other income contributed 16.27% of pre-tax profit, while net profit increased only 1.61% year on year.
Price around the results
Sequential margin recovery does not reverse the annual decline
Bikaji reported consolidated revenue growth of 1.86% sequentially, while expenses rose 0.33%, lifting operating margin by 1.31 percentage points. This improved operating profit by 12.84% sequentially, but the year-on-year picture was weaker: expenses grew 14.17% against revenue growth of 12.50%, reducing margin by 1.27 percentage points. Net profit therefore rose only 1.61% year on year, to Rs 59.47 cr.
Other income supported pre-tax profit as financing costs rose
Other income accounted for 16.27% of pre-tax profit, making reported earnings less dependent on operating performance in the quarter. Interest expense rose 9.53% year on year and 32.90% sequentially, while depreciation increased 14.19% year on year. The tax rate also rose 0.83 percentage points year on year, limiting the conversion of pre-tax profit growth into net profit.
Margin remains below the FMCG peer median
Bikaji's 13.48% operating margin was 2.50 percentage points below the 15.98% median for the 28 Fast Moving Consumer Goods peers that had reported the same quarter. The company ranked 11th from the bottom on this measure. Its margin trend has been uneven: it improved from 12.11% in Q4FY25 to 15.44% in Q2FY26, then fell to 12.17% in Q4FY26 before this quarter's sequential recovery.
No immediate market reaction after the post-close filing
The consolidated results were filed after market close, so the stock has not yet recorded a reaction to this quarter. Across the eight recent result reactions, the stock rose three times and fell five times, with a median absolute move of 1.80%. That history points to a more frequent decline than rise, but usually with modest moves.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹734 cr | ₹721 cr | +1.86% | +12.50% |
| Other income | ₹13 cr | ₹18 cr | -26.01% | +31.40% |
| Expenses | ₹635 cr | ₹633 cr | +0.33% | +14.17% |
| Operating profit | ₹99 cr | ₹88 cr | +12.84% | +2.85% |
| Operating margin (%) | 13.48% | 12.17% | — | — |
| Interest | ₹5 cr | ₹4 cr | +32.90% | +9.53% |
| Depreciation | ₹26 cr | ₹24 cr | +7.94% | +14.19% |
| Profit before tax | ₹81 cr | ₹77 cr | +4.46% | +2.77% |
| Tax | ₹21 cr | ₹21 cr | +0.05% | +6.14% |
| Net profit | ₹59 cr | ₹56 cr | +6.12% | +1.61% |
| EPS (₹) | ₹2.40 | ₹2.25 | +6.67% | +0.42% |
Operating margin of 13.48% compares with a Fast Moving Consumer Goods sector median of 15.98% across 28 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above the current 13.48% after the sequential recovery.
- Whether expense growth remains below revenue growth, as it did sequentially at 0.33% versus 1.86%.
- Whether other income's 16.27% contribution to pre-tax profit declines.