CCL Products lifts margin as costs grow slower than revenue
Consolidated net profit rose 61.33% year on year, with the lower 9.42% tax rate adding to the benefit from operating growth.
Filed 27 Jul 2026, 20:26 IST · after market close · CCL Products (India) Ltd (CCL)
Key takeaways
- Consolidated revenue grew 13.72% year on year while expenses rose 12.30%, lifting operating margin by 1.05 percentage points to 16.12%.
- Net profit increased 61.33% to Rs 116.88 cr, helped by a 13.66-percentage-point drop in the tax rate and a 14.90% fall in interest costs.
- Operating margin improved 0.45 percentage points sequentially, but remained below the 17.50%-17.61% levels recorded in Q2FY26 and Q3FY26.
Price around the results
Revenue growth outpaced expenses in Q1FY27
Consolidated revenue grew 13.72% year on year, while expenses increased 12.30%, allowing operating profit to grow 21.71%. Sequentially, revenue declined 1.96%, but expenses fell 2.49%, so operating margin improved 0.45 percentage points. The company’s 16.12% margin was 0.14 percentage points above the 15.98% median for the six Fast Moving Consumer Goods peers that had reported.
Lower tax and interest costs lifted reported profit
Net profit growth of 61.33% was faster than the 36.99% increase in pre-tax profit because the tax rate fell to 9.42% from 23.08% a year earlier. Interest costs also declined 14.90%, partly supporting the improvement in pre-tax profit. Other income contributed 2.45% of pre-tax profit, so it was not a major driver of earnings quality.
Margin recovered sequentially but remains below the recent peak
The 16.12% operating margin improved from 15.67% in Q4FY26, reversing the sequential decline seen in the previous quarter. It is still below the 17.50% margin in Q2FY26 and 17.61% in Q3FY26, so the latest recovery has not restored the earlier level. Sequential pre-tax profit rose 4.79%, while the tax rate increased 2.43 percentage points to 9.42%.
Results were filed after the market close
The consolidated results were filed after market close on 27 July 2026, so there was no immediate market reaction to assess. In the eight-result history, the stock rose after three results and fell after five, with a median absolute move of 5.45%.
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 | ₹1,200 cr | ₹1,224 cr | -1.96% | +13.72% |
| Other income | ₹3 cr | ₹2 cr | +62.89% | +31.67% |
| Expenses | ₹1,007 cr | ₹1,033 cr | -2.49% | +12.30% |
| Operating profit | ₹194 cr | ₹192 cr | +0.90% | +21.71% |
| Operating margin (%) | 16.12% | 15.67% | — | — |
| Interest | ₹29 cr | ₹30 cr | -5.07% | -14.90% |
| Depreciation | ₹39 cr | ₹40 cr | -3.51% | +16.27% |
| Profit before tax | ₹129 cr | ₹123 cr | +4.79% | +36.99% |
| Tax | ₹12 cr | ₹9 cr | +41.11% | -44.11% |
| Net profit | ₹117 cr | ₹115 cr | +2.05% | +61.33% |
| EPS (₹) | ₹8.77 | ₹8.60 | +1.98% | +60.92% |
Operating margin of 16.12% compares with a Fast Moving Consumer Goods sector median of 15.98% across 6 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 16.12% after the recovery from 15.67% in Q4FY26.
- Whether revenue growth resumes after the 1.96% sequential decline in Q1FY27.
- Whether the tax rate remains near 9.42% rather than returning toward the 23.08% reported in Q1FY26.