CCL's margin recovers sequentially but trails sector peers
Revenue growth broadly matched expense growth year on year, while lower interest and tax costs lifted net profit by 29.00%.
Filed 15 Oct 2026, 20:32 IST · after market close · CCL Products (India) Ltd (CCL)
Key takeaways
- Consolidated revenue grew +7.46% year on year while expenses rose +7.43%, leaving operating margin almost unchanged, up 0.02 percentage points.
- Net profit rose +29.00% year on year, helped by a 6.87-percentage-point fall in the tax rate and a -20.38% decline in interest expense.
- Operating margin recovered 1.40 percentage points sequentially to 17.52%, but remained 5.85 percentage points below the 23.37% median for five reporting sector peers.
Price around the results
Revenue growth kept pace with costs
CCL Products reported consolidated revenue growth of +7.46% year on year in Q2FY27, with expenses rising a similar +7.43%; this kept operating margin broadly flat. Sequentially, revenue increased +0.86% while expenses declined -0.82%, allowing operating margin to improve by 1.40 percentage points. The results were filed after market close on 15 October 2026.
Lower interest and tax costs lifted profit
The -20.38% year-on-year fall in interest expense supported pre-tax profit growth of +18.72%, despite depreciation rising +4.06%. Net profit grew faster at +29.00% because the tax rate fell 6.87 percentage points to 13.77%; sequentially, however, the tax rate rose 4.35 percentage points. Other income accounted for 3.48% of pre-tax profit, so it was not the main source of the profit increase.
Margin recovered, but remains below peers
Operating margin has recovered from 15.67% in Q4FY26 to 16.12% in Q1FY27 and 17.52% in Q2FY27, reversing the decline seen after Q3FY26's 17.61%. Even after that recovery, CCL's margin was 5.85 percentage points below the 23.37% median among five Fast Moving Consumer Goods peers that have reported. There is no post-result market reaction yet; across the last eight result reactions, the stock was up four times and down four times, with a median absolute move of 5.45%.
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 | ₹1,211 cr | ₹1,200 cr | +0.86% | +7.46% |
| Other income | ₹5 cr | ₹3 cr | +66.14% | +254.73% |
| Expenses | ₹999 cr | ₹1,007 cr | -0.82% | +7.43% |
| Operating profit | ₹212 cr | ₹194 cr | +9.58% | +7.59% |
| Operating margin (%) | 17.52% | 16.12% | — | — |
| Interest | ₹26 cr | ₹29 cr | -9.38% | -20.38% |
| Depreciation | ₹40 cr | ₹39 cr | +3.74% | +4.06% |
| Profit before tax | ₹151 cr | ₹129 cr | +16.93% | +18.72% |
| Tax | ₹21 cr | ₹12 cr | +70.95% | -20.82% |
| Net profit | ₹130 cr | ₹117 cr | +11.32% | +29.00% |
| EPS (₹) | ₹9.77 | ₹8.77 | +11.40% | +29.06% |
Operating margin of 17.52% compares with a Fast Moving Consumer Goods sector median of 23.37% across 5 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 17.52% after its 1.40-percentage-point sequential recovery.
- Whether revenue growth remains near the +7.46% year-on-year pace while expenses continue to grow no faster than revenue.
- Whether the tax rate stays close to 13.77% rather than returning to the 20.64% level recorded a year earlier.