Gopal Snacks lifts operating margin as revenue grows 9.29% QoQ
Standalone profit growth was helped by a 5.96-point fall in the tax rate and other income contributing 57.86% of pre-tax profit.
Filed 02 Nov 2026, 17:56 IST · after market close · Gopal Snacks Ltd (GOPAL)
Key takeaways
- Standalone operating margin improved 1.56 percentage points sequentially as revenue grew 9.29% while expenses rose 7.44%.
- Other income contributed 57.86% of standalone profit before tax, making the quarter's net profit quality weaker than operating profit growth suggests.
- Management reported 22.9% year-on-year revenue growth, led by a 25.6% increase in Gathiya sales.
Price around the results
Revenue momentum improved in Q2FY27
Gopal Snacks reported standalone revenue growth of 9.29% sequentially, while management said revenue was up 22.9% year on year in Q2FY27. The company attributed the year-on-year increase partly to Gathiya sales, which management said rose 25.6%, and a distributor network that reached 1,057. The results were filed after market close.
Operating margin expanded, but profit quality needs scrutiny
Operating margin rose 1.56 percentage points sequentially because revenue grew faster than expenses, with growth of 9.29% versus 7.44%. The tax rate fell 5.96 percentage points, which also supported the sequential increase in net profit. Other income accounted for 57.86% of profit before tax, so reported earnings were materially supported by a non-operating source.
Margin remains below the reported FMCG peer median
The company's 9.01% operating margin was 3.29 percentage points below the 12.3% median for the 30 Fast Moving Consumer Goods peers that had reported the same quarter. Sequentially, however, margin improved from 7.45% in Q1FY27; the available trend shows one quarter of improvement rather than a longer multi-quarter direction.
Capacity changes are aimed at lowering production and logistics costs
Management said the Rajkot Main facility had resumed operations with installed capacity of 1,05,233 MTPA, while a Besan unit commissioned at Nagpur added annual capacity of 19,642 MT. The company said consolidating production from Gondal to Rajkot is intended to reduce operating, transportation and power costs. Management also said the Nagpur unit should generate recurring transportation savings and simplify material movement.
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 | ₹462 cr | ₹422 cr | +9.29% |
| Other income | ₹35 cr | ₹1 cr | +5108.82% |
| Expenses | ₹420 cr | ₹391 cr | +7.44% |
| Operating profit | ₹42 cr | ₹31 cr | +32.23% |
| Operating margin (%) | 9.01% | 7.45% | — |
| Interest | ₹4 cr | ₹3 cr | +21.72% |
| Depreciation | ₹12 cr | ₹11 cr | +15.85% |
| Profit before tax | ₹61 cr | ₹19 cr | +228.43% |
| Tax | ₹15 cr | ₹6 cr | +165.46% |
| Net profit | ₹46 cr | ₹13 cr | +256.89% |
| EPS (₹) | ₹3.68 | ₹1.03 | +257.28% |
Operating margin of 9.01% compares with a Fast Moving Consumer Goods sector median of 12.30% across 30 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 FY27 revenue increased 22.9% year on year to Rs. 461.5 crores, with Gathiya sales up 25.6%.
- The distributor network reached 1,057 distributors during Q2 FY27.
Guidance & outlook
- The Nagpur Besan unit is expected to generate recurring transportation savings and simplify material movement.
Expansion
- The Rajkot Main facility resumed operations with installed capacity of 1,05,233 MTPA.
- The company commissioned a Besan manufacturing unit at its existing Nagpur facility with annual capacity of 19,642 MT.
New initiatives
- The company is consolidating production from Gondal to Rajkot to reduce operating, transportation and power costs.
- Brand-building initiatives include OTT platforms, influencer collaborations and newspaper advertising.
Problems & risks
- The company is managing margins while sustaining revenue growth in a commodity-inflationary environment.
What to watch
- Whether standalone operating margin holds above 9.01% as the company manages commodity inflation.
- Whether the 19,642 MT Nagpur Besan unit is followed by lower transportation and operating costs.
- Whether the distributor network expands beyond 1,057 while Gathiya growth remains above 25.6%.