Net profit fell 32.93% YoY despite 3.37% revenue growth
Expenses grew faster than sales, narrowing operating margin 0.90 percentage points; margin still recovered 0.57 points QoQ.
Filed 12 Aug 2026, 14:09 IST · EID Parry (India) Ltd (EIDPARRY)
Key takeaways
- Consolidated net profit fell 32.93% YoY as revenue grew 3.37% but expenses grew 4.40%.
- Operating margin narrowed 0.90 percentage points YoY, although it recovered 0.57 percentage points QoQ.
- Depreciation rose 38.19% YoY and interest increased 10.59%, while other income contributed 7.08% of pre-tax profit.
Price around the results
Revenue growth did not convert into operating profit
Consolidated revenue grew 3.37% YoY and 14.40% QoQ, but operating profit fell 6.79% YoY because expenses rose 4.40%, faster than sales. Sequentially, revenue growth of 14.40% exceeded expense growth of 13.70%, lifting operating profit 22.77% and improving the margin by 0.57 percentage points.
Depreciation and interest weighed on earnings
Operating margin narrowed 0.90 percentage points YoY to reflect the faster rise in costs. Depreciation increased 38.19% and interest rose 10.59%, further reducing the conversion of operating profit into pre-tax profit. Other income accounted for 7.08% of pre-tax profit, while the tax rate rose 1.80 percentage points YoY, so a lower tax rate did not flatter net profit.
Margin recovered from Q4 but remains below peers
The operating margin improved from 7.76% in Q4FY26 to 8.33% in Q1FY27, after falling from 10.30% in Q2FY26 to 8.10% in Q3FY26; the latest quarter therefore breaks the recent sequential decline but remains below 9.23% a year earlier. Among 37 Fast Moving Consumer Goods peers that have reported, EID Parry's margin was 7.79 percentage points below the 16.12% median and ranked seventh from the bottom.
Past result-day reactions have been mixed
The filing came at 14:09 IST, before any post-results reaction could be assessed. Across the last eight results, the stock rose four times and fell four times, with a median absolute move of 0.98%; the recent history included a decline of 3.20%, so the pattern has been mixed rather than directional.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹9,018 cr | ₹7,882 cr | +14.40% | +3.37% |
| Other income | ₹30 cr | ₹-430 cr | — | -66.60% |
| Expenses | ₹8,267 cr | ₹7,271 cr | +13.70% | +4.40% |
| Operating profit | ₹751 cr | ₹611 cr | +22.77% | -6.79% |
| Operating margin (%) | 8.33% | 7.76% | — | — |
| Interest | ₹115 cr | ₹119 cr | -3.27% | +10.59% |
| Depreciation | ₹243 cr | ₹226 cr | +7.71% | +38.19% |
| Profit before tax | ₹423 cr | ₹-162 cr | — | -31.29% |
| Tax | ₹111 cr | ₹125 cr | -10.79% | -26.23% |
| Net profit | ₹312 cr | ₹-287 cr | — | -32.93% |
| EPS (₹) | ₹7.96 | ₹-18.74 | — | -42.53% |
Operating margin of 8.33% compares with a Fast Moving Consumer Goods sector median of 16.12% across 37 peers that have reported Q1FY27.
What to watch
- Whether operating margin sustains its recovery above 8.33% after reaching 7.76% in Q4FY26.
- Whether expense growth stays below revenue growth after rising 4.40% versus 3.37% YoY.
- Whether depreciation growth moderates from 38.19% YoY and interest growth from 10.59%.