Bikaji margin slips as costs outpace 13.04% revenue growth
The consolidated operating margin fell 0.83 percentage points sequentially, while lower tax partly cushioned higher interest costs and weaker pre-tax profit.
Filed 05 Nov 2026, 15:56 IST · after market close · Bikaji Foods International Ltd (BIKAJI)
Key takeaways
- Revenue grew 13.04% year on year, but expenses rose 16.77%, taking operating margin down 2.79 percentage points to 12.65%.
- Net profit fell 11.21% year on year as interest costs rose 37.43%, despite a 1.86 percentage-point decline in the tax rate.
- Operating margin remained 1.93 percentage points above the 10.72% median for 53 reported FMCG peers.
Price around the results
Revenue recovered sequentially, but profit lagged year-on-year
Bikaji Foods’ consolidated revenue rose 13.04% year on year and 27.82% sequentially to Rs 938.53 cr. Operating profit declined 7.42% year on year because expenses grew faster than sales, while net profit fell 11.21% to Rs 68.96 cr. Sequentially, net profit rose 15.96% as revenue increased 27.82%.
Cost growth cut margin; lower tax softened the earnings decline
Expenses increased 16.77% year on year against 13.04% revenue growth, narrowing operating margin by 2.79 percentage points; sequentially, the margin fell 0.83 percentage points because costs again grew faster than revenue. Interest expense rose 37.43% year on year and 36.36% sequentially. The tax rate declined 1.86 percentage points year on year and 0.58 percentage points sequentially, partly cushioning the pressure on profit. Other income accounted for 9.41% of pre-tax profit, so it was a meaningful contributor to reported earnings.
Margin remains above peers but is below last year’s level
The 12.65% operating margin was 1.93 percentage points above the 10.72% median among 53 FMCG peers that have reported the quarter. The margin improved from 12.17% in Q4FY26 and 12.45% in Q3FY26, but remained below 13.48% in Q1FY27 and 15.44% a year earlier. This quarter therefore marks a sequential decline after the Q1FY27 rebound, rather than a third straight quarterly fall.
Festive marketing initiatives feature in the company presentation
The presentation said the company had planned a pan-India influencer-led campaign to increase awareness and participation in its cashback programme. It also said Bikaji created a pan-India KBC festive integration through two strategic hamper associations. These initiatives were presented alongside the quarter’s revenue performance, but the filing did not quantify their financial contribution.
Results were filed after market close
The consolidated results were filed after market close, so there is no post-results stock reaction to assess yet. In the eight prior result reactions, the stock rose three times and fell five times, with a median absolute move of 2.21%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹939 cr | ₹734 cr | +27.82% | +13.04% |
| Other income | ₹9 cr | ₹13 cr | -33.49% | +9.80% |
| Expenses | ₹820 cr | ₹635 cr | +29.05% | +16.77% |
| Operating profit | ₹119 cr | ₹99 cr | +19.90% | -7.42% |
| Operating margin (%) | 12.65% | 13.48% | — | — |
| Interest | ₹7 cr | ₹5 cr | +36.36% | +37.43% |
| Depreciation | ₹28 cr | ₹26 cr | +4.92% | +16.01% |
| Profit before tax | ₹93 cr | ₹81 cr | +15.02% | -13.46% |
| Tax | ₹24 cr | ₹21 cr | +12.46% | -19.30% |
| Net profit | ₹69 cr | ₹59 cr | +15.96% | -11.21% |
| EPS (₹) | ₹2.82 | ₹2.40 | +17.50% | -11.32% |
Operating margin of 12.65% compares with a Fast Moving Consumer Goods sector median of 10.72% across 53 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New initiatives
- A pan-India influencer-led campaign was planned to increase cashback awareness and consumer participation.
- The company created a pan-India KBC festive integration through two strategic hamper associations.
What to watch
- Whether operating margin holds above 12.65% after the 0.83 percentage-point sequential decline.
- Whether expense growth moves below the 13.04% year-on-year revenue growth rate.
- Whether interest-cost growth moderates from 37.43% year on year and other income’s 9.41% share of pre-tax profit declines.