Fine Organic's Q1 margin jumps 4.35 points as costs lag sales
Consolidated revenue grew +17.98% YoY while expenses rose +11.49%, but other income still supplied 12.16% of pre-tax profit.
Filed 07 Aug 2026, 15:51 IST · after market close · Fine Organic Industries Ltd (FINEORG)
Key takeaways
- Consolidated operating margin expanded 4.35 percentage points year on year to 25.35% as revenue growth of +17.98% outpaced expense growth of +11.49%.
- Net profit rose +17.97% year on year to Rs 138.14 cr, although other income contributed 12.16% of pre-tax profit.
- Operating margin recovered from 17.01% in Q3FY26 to 20.76% in Q4FY26 and 25.35% in Q1FY27.
Price around the results
Revenue growth delivered operating leverage
Fine Organic Industries reported consolidated revenue growth of +17.98% year on year and +11.01% sequentially in Q1FY27. Expenses grew more slowly, at +11.49% year on year and +4.59% quarter on quarter, lifting operating profit by +42.38% YoY and +35.51% QoQ. The result was a 4.35 percentage-point year-on-year and 4.59 percentage-point sequential expansion in operating margin.
Other income remains material to reported profit
Other income accounted for 12.16% of pre-tax profit, so the earnings result includes a material non-operating contribution. The year-on-year tax rate was lower by 0.84 percentage points, which provided a modest lift to net profit growth, while the sequential tax rate rose 7.02 percentage points and limited the conversion of the +28.55% PBT increase into a +17.58% net profit increase. Sequential interest expense fell by 66.79%, partly supporting the PBT improvement.
Margin recovery now sits above the peer median
Operating margin has risen for two consecutive quarters after reaching 17.01% in Q3FY26, moving to 20.76% in Q4FY26 and 25.35% in Q1FY27. Among 62 Commodities companies that have reported the same quarter, Fine Organic's margin was 6.94 percentage points above the 18.41% sector median.
No immediate market reaction after the filing
The results were filed after market close, so there is no post-results stock move to assess yet. Across eight recent result reactions, the stock fell five times and rose three times, with a median absolute move of 2.29%, indicating that declines have been more common than gains after its recent results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹694 cr | ₹625 cr | +11.01% | +17.98% |
| Other income | ₹22 cr | ₹34 cr | -33.77% | -51.57% |
| Expenses | ₹518 cr | ₹495 cr | +4.59% | +11.49% |
| Operating profit | ₹176 cr | ₹130 cr | +35.51% | +42.38% |
| Operating margin (%) | 25.35% | 20.76% | — | — |
| Interest | ₹1 cr | ₹3 cr | -66.79% | +69.81% |
| Depreciation | ₹14 cr | ₹18 cr | -23.39% | +17.22% |
| Profit before tax | ₹184 cr | ₹143 cr | +28.55% | +16.64% |
| Tax | ₹45 cr | ₹25 cr | +79.49% | +12.82% |
| Net profit | ₹138 cr | ₹117 cr | +17.58% | +17.97% |
| EPS (₹) | ₹45.06 | ₹38.32 | +17.59% | +17.99% |
Operating margin of 25.35% compares with a Commodities sector median of 18.41% across 62 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 25.35% after the Q1FY27 expansion.
- Whether expense growth remains below revenue growth, which stood at +11.49% versus +17.98% YoY.
- Whether other income stays below or exceeds its 12.16% contribution to pre-tax profit.