Q2 margin expands as revenue growth outpaces expense growth
Standalone operating margin rose 1.88 percentage points sequentially, while net profit increased +49.92% with the tax rate virtually unchanged.
Filed 02 Nov 2026, 18:22 IST · after market close · Ganesh Consumer Products Ltd (GANESHCP)
Key takeaways
- Standalone operating margin expanded by 1.88 percentage points sequentially as revenue grew +20.26%, faster than expenses at +17.71%.
- Net profit increased +49.92% sequentially, while the tax rate changed by only -0.01 percentage points and other income contributed 6.95% of pre-tax profit.
- The 13.03% operating margin was 0.77 percentage points above the 12.26% median for 38 reported FMCG peers.
Price around the results
Q2FY27 momentum was led by operating leverage
On a standalone basis, the quarter improved materially from Q1FY27: revenue grew +20.26%, while operating profit rose +40.47% and net profit increased +49.92%. The sharper rise in operating profit shows that incremental revenue translated into profit faster than in the previous quarter.
Costs lagged revenue, supporting the margin gain
Expenses increased +17.71%, below revenue growth of +20.26%, lifting operating margin by 1.88 percentage points. Interest rose +7.02% and depreciation increased +0.91%, but the tax rate moved by only -0.01 percentage points, so the net profit increase was not driven by a lower tax burden. Other income accounted for 6.95% of pre-tax profit, making it a contributor but not the main source of earnings.
Margin was ahead of the reported FMCG peer median
Ganesh Consumer Products' 13.03% operating margin was 0.77 percentage points above the 12.26% median among 38 FMCG peers that had reported the same quarter. This places the company above the sector midpoint on operating profitability for the reported period.
Results were filed after market close
The company filed its standalone Q2FY27 results after market close on 2 November 2026. The stock reaction therefore falls outside this immediate results read.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹227 cr | ₹189 cr | +20.26% |
| Other income | ₹2 cr | ₹2 cr | -3.31% |
| Expenses | ₹197 cr | ₹168 cr | +17.71% |
| Operating profit | ₹30 cr | ₹21 cr | +40.47% |
| Operating margin (%) | 13.03% | 11.15% | — |
| Interest | ₹1 cr | ₹1 cr | +7.02% |
| Depreciation | ₹6 cr | ₹5 cr | +0.91% |
| Profit before tax | ₹25 cr | ₹17 cr | +49.91% |
| Tax | ₹6 cr | ₹4 cr | +49.88% |
| Net profit | ₹19 cr | ₹13 cr | +49.92% |
| EPS (₹) | ₹4.70 | ₹3.14 | +49.68% |
Operating margin of 13.03% compares with a Fast Moving Consumer Goods sector median of 12.26% across 38 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds at or above 13.03% after its 1.88-percentage-point sequential expansion.
- Whether expenses continue to grow below revenue's +20.26% pace after rising +17.71% in Q2FY27.
- Whether other income's contribution remains at 6.95% of pre-tax profit.