CCL Products' profit jumps on other income as operating margin falls
Revenue grew +24.53% YoY, but costs grew faster and operating margin fell for a second straight quarter; the stock declined -7.01% after the results.
Filed 07 May 2026, 18:09 IST · after market close · CCL Products (India) Ltd (CCL)
Key takeaways
- Standalone net profit rose +255.92% YoY, but other income contributed 82.23% of pre-tax profit.
- Operating margin narrowed 2.71 percentage points YoY to 8.97% as expenses grew +28.35%, faster than revenue at +24.53%.
- The stock fell -7.01% on the first day after results, versus a 2.55% median absolute move across its past eight result reactions.
Price around the results
Profit growth was led by non-operating income
CCL Products reported standalone results, with net profit up +255.92% YoY despite operating profit declining -4.38%. Other income rose to Rs 92.92 cr and accounted for 82.23% of pre-tax profit, making the reported profit increase heavily dependent on non-operating income. The tax rate was 5.03%, which also kept the conversion from pre-tax profit to net profit high.
Costs squeezed the operating margin in Q4FY26
Revenue increased +24.53% YoY, but expenses grew faster at +28.35%, narrowing operating margin by 2.71 percentage points. Sequentially, revenue declined -1.16% while expenses rose +3.66%, causing a sharper 4.22-percentage-point margin contraction. Interest expense fell -9.34% QoQ, but that reduction did not offset the operating cost pressure.
Margin is below peers after two consecutive quarterly declines
Operating margin has fallen from 17.09% in Q2FY26 to 13.19% in Q3FY26 and 8.97% in Q4FY26, marking two straight quarterly declines. It was 7.78 percentage points below the 16.75% median for 26 Fast Moving Consumer Goods peers that had reported, placing CCL Products fifth from the bottom. The YoY comparison is more favourable for revenue, but not for operating profitability.
The market reaction was unusually negative for this stock
The stock declined -7.01% on the first day after the results, was down -8.99% after one session and -11.84% after 15 sessions. That reaction was weaker than the stock's usual result-day pattern: it rose after three of its past eight results and fell after five, with a median absolute move of 2.55%.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹558 cr | ₹564 cr | -1.16% | +24.53% |
| Other income | ₹93 cr | ₹5 cr | +1673.28% | +1076.20% |
| Expenses | ₹508 cr | ₹490 cr | +3.66% | +28.35% |
| Operating profit | ₹50 cr | ₹74 cr | -32.81% | -4.38% |
| Operating margin (%) | 8.97% | 13.19% | — | — |
| Interest | ₹16 cr | ₹17 cr | -9.34% | -15.84% |
| Depreciation | ₹14 cr | ₹14 cr | -0.14% | +20.42% |
| Profit before tax | ₹113 cr | ₹48 cr | +134.88% | +279.83% |
| Tax | ₹6 cr | ₹12 cr | -52.15% | — |
| Net profit | ₹107 cr | ₹36 cr | +196.03% | +255.92% |
| EPS (₹) | ₹8.06 | ₹2.72 | +196.32% | +256.64% |
Operating margin of 8.97% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.01% | -6.39% |
| Next session | -8.99% | — |
| 5 sessions | -7.58% | -4.77% |
| 15 sessions | -11.84% | — |
| 30 sessions | -4.89% | — |
Volume on the results session was 3.78× its 20-day average.
What to watch
- Whether operating margin recovers from 8.97% after two consecutive quarterly declines.
- Whether revenue momentum returns after the -1.16% QoQ decline.
- Whether other income remains a major contributor after accounting for 82.23% of pre-tax profit.