Fine Organic’s margin holds at 25.35% as profit rises 40% YoY
Revenue grew faster than expenses year on year, while lower tax and other income equal to 14.34% of pre-tax profit supported earnings.
Filed 02 Nov 2026, 16:58 IST · after market close · Fine Organic Industries Ltd (FINEORG)
Key takeaways
- Revenue grew 22.12% year on year as expenses rose 17.82%, lifting operating margin by 2.72 percentage points.
- Net profit increased 40.14% year on year to Rs 152.12 cr, helped by a 0.94-percentage-point fall in the tax rate.
- Operating margin held at 25.35% sequentially after rising from 17.01% in Q3FY26 to 25.35% in Q1FY27.
Price around the results
Revenue growth outpaced costs year on year
Consolidated revenue rose 22.12% year on year to Rs 729.39 cr, while expenses grew 17.82%, driving a 36.82% increase in operating profit. Sequentially, revenue and expenses grew at nearly the same pace, 5.07% and 5.06%, so operating margin was unchanged at 25.35%. The company’s margin was 10.72 percentage points above the 14.63% median for 75 reported commodities-sector peers.
Profit growth had support from tax and other income
Net profit rose 40.14% year on year, with the lower tax rate contributing as it fell 0.94 percentage points to 22.62%. The sequential tax-rate decline was larger at 2.12 percentage points, helping net profit grow 10.12% even as interest expense rose 134.44%. Other income contributed 14.34% of pre-tax profit, so earnings were not derived entirely from operations.
Margin recovery has paused after two quarters of improvement
Operating margin improved from 17.01% in Q3FY26 to 20.76% in Q4FY26 and 25.35% in Q1FY27, before holding at 25.35% in Q2FY27. This marks a pause in the recent margin recovery rather than a further sequential expansion. Year on year, however, the margin remained 2.72 percentage points higher.
No post-result trading move yet
Fine Organic filed its consolidated results after market close, so there is no post-result stock reaction to assess yet. Across the eight prior result reactions, the stock rose three times and fell five times, with a median absolute move of 2.29%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹729 cr | ₹694 cr | +5.07% | +22.12% |
| Other income | ₹28 cr | ₹22 cr | +26.34% | +40.37% |
| Expenses | ₹544 cr | ₹518 cr | +5.06% | +17.82% |
| Operating profit | ₹185 cr | ₹176 cr | +5.10% | +36.82% |
| Operating margin (%) | 25.35% | 25.35% | — | — |
| Interest | ₹2 cr | ₹1 cr | +134.44% | +390.70% |
| Depreciation | ₹14 cr | ₹14 cr | +4.41% | +12.65% |
| Profit before tax | ₹197 cr | ₹184 cr | +7.10% | +38.43% |
| Tax | ₹44 cr | ₹45 cr | -2.07% | +32.90% |
| Net profit | ₹152 cr | ₹138 cr | +10.12% | +40.14% |
| EPS (₹) | ₹49.62 | ₹45.06 | +10.12% | +40.17% |
Operating margin of 25.35% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds at or above 25.35% after the recent recovery.
- Whether revenue growth remains ahead of expense growth after the 22.12% versus 17.82% year-on-year gap.
- Whether other income remains a material contributor after accounting for 14.34% of pre-tax profit.