Genus Paper margin improves, but stays below commodity peer median
Standalone revenue growth outpaced expenses in Q2FY27, while a lower tax rate amplified the rise in net profit.
Filed 29 Oct 2026, 13:12 IST · Genus Paper & Boards Ltd (GENUSPAPER)
Key takeaways
- Standalone revenue rose +14.11% QoQ while expenses increased +13.68%, lifting operating margin by 0.34 percentage points to 9.01%.
- Net profit rose +102.27% QoQ as interest costs fell 1.24% and the tax rate declined 0.29 percentage points.
- Genus Paper’s 9.01% operating margin was 5.62 percentage points below the 14.63% median of 41 reporting commodity peers.
Price around the results
Revenue growth outpaced cost growth
In standalone Q2FY27 results, revenue grew +14.11% QoQ to Rs 249.59 cr, ahead of the +13.68% increase in expenses. That operating leverage lifted operating profit by +18.67% and widened the operating margin by 0.34 percentage points to 9.01%. This was the first sequential margin improvement shown in the available trend.
Lower tax rate amplified profit growth
Profit before tax rose +101.40% QoQ, helped by the 1.24% decline in interest expense, while depreciation increased only 0.82%. Net profit grew +102.27%, but the tax rate fell to 1.20%, which flattered the reported increase. Other income contributed just 0.28% of pre-tax profit, so it was not a material driver of earnings.
Margin remains below the commodity peer median
Genus Paper’s 9.01% operating margin was 5.62 percentage points below the 14.63% median among 41 commodity companies that had reported the same quarter. The company ranked 10th from the bottom on this measure, despite the sequential improvement.
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 | ₹250 cr | ₹219 cr | +14.11% |
| Other income | ₹0 cr | ₹0 cr | +100.00% |
| Expenses | ₹227 cr | ₹200 cr | +13.68% |
| Operating profit | ₹23 cr | ₹19 cr | +18.67% |
| Operating margin (%) | 9.01% | 8.67% | — |
| Interest | ₹10 cr | ₹11 cr | -1.24% |
| Depreciation | ₹5 cr | ₹5 cr | +0.82% |
| Profit before tax | ₹7 cr | ₹4 cr | +101.40% |
| Tax | ₹0 cr | ₹0 cr | +80.00% |
| Net profit | ₹7 cr | ₹4 cr | +102.27% |
| EPS (₹) | ₹0.28 | ₹0.14 | +100.00% |
Operating margin of 9.01% compares with a Commodities sector median of 14.63% across 41 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.01% after the 0.34 percentage-point QoQ improvement.
- Whether expenses continue to grow more slowly than revenue after +13.68% versus +14.11% QoQ.
- Whether the tax rate stays near 1.20% after falling 0.29 percentage points sequentially.