Gulshan Polyols’ margin drops 2 percentage points sequentially
Revenue fell 3.89% while expenses declined only 1.67%, and lower other income added to the sequential profit decline.
Filed 12 Nov 2026, 17:55 IST · after market close · Gulshan Polyols Ltd (GULPOLY)
Key takeaways
- Standalone operating margin fell 2.00 percentage points sequentially to 11.27% as expenses declined more slowly than revenue.
- Standalone net profit dropped 27.32% sequentially to Rs 38.89 cr, despite a 1.36 percentage-point decline in the tax rate.
- The company’s standalone operating margin was 0.58 percentage points above the 10.69% median for 70 reported FMCG peers.
Price around the results
Revenue decline translated into a sharper profit fall
Standalone revenue fell 3.89% sequentially, while operating profit declined 18.43%, showing the effect of weaker operating leverage. Net profit fell 27.32% to Rs 38.89 cr, with the decline also reflecting lower other income and the operating-margin contraction. EPS fell 27.27% to Rs 6.24.
Slower cost reduction squeezed the operating margin
Expenses declined 1.67%, less than the 3.89% fall in revenue, so operating margin narrowed by 2.00 percentage points to 11.27%. Interest expense fell 12.13% and the tax rate declined by 1.36 percentage points to 25.73%, which partly cushioned the pressure below operating profit. Other income moved from Rs 5.67 cr in Q1FY27 to negative Rs 0.62 cr and represented -1.18% of pre-tax profit in the quarter, making profit quality weaker than the headline operating result suggests.
Margin remains above the reported FMCG peer median
Gulshan Polyols’ standalone operating margin was 0.58 percentage points above the 10.69% median reported by 70 FMCG peers. The sequential margin decline marks a reversal from the 13.27% margin recorded in Q1FY27, although there is not enough quarterly history here to establish a longer multi-quarter pattern.
Management links expansion to FY27 capacity plans
Management said FY27 consolidated revenue guidance remains Rs 2,600 cr, with EBITDA margin targeted at 10-11% and PAT margin at 5-6%; these are consolidated targets, while the quarter’s results are standalone. The company said it is adding 30,000 MTPA of sorbitol capacity to reach 110,000 MTPA and expanding MDP/NDC capacity from 5,000 MTPA to 30,000 MTPA, with both projects targeted for commissioning in April 2027. Management also said it is using more FCI rice and damaged food grains to offset rising maize costs, and is targeting 80%-90% capacity utilisation in FY27.
Results were filed after market close
The standalone results were filed after market close on 12 Nov 2026. No post-results stock reaction is available yet, so the quarter cannot be compared with the company’s historical reaction pattern.
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 | ₹615 cr | ₹640 cr | -3.89% |
| Other income | ₹-1 cr | ₹6 cr | — |
| Expenses | ₹546 cr | ₹555 cr | -1.67% |
| Operating profit | ₹69 cr | ₹85 cr | -18.43% |
| Operating margin (%) | 11.27% | 13.27% | — |
| Interest | ₹6 cr | ₹7 cr | -12.13% |
| Depreciation | ₹10 cr | ₹11 cr | -0.95% |
| Profit before tax | ₹52 cr | ₹73 cr | -28.66% |
| Tax | ₹13 cr | ₹20 cr | -32.24% |
| Net profit | ₹39 cr | ₹54 cr | -27.32% |
| EPS (₹) | ₹6.24 | ₹8.58 | -27.27% |
Operating margin of 11.27% compares with a Fast Moving Consumer Goods sector median of 10.69% across 70 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.
Guidance & outlook
- FY27 consolidated revenue is expected at ₹2,600 crore, with an EBITDA margin target of 10-11% and PAT margin target of 5-6%.
- The company is targeting 80%-90% capacity utilization in FY27.
Expansion
- The company is adding 30,000 MTPA of sorbitol capacity, taking total capacity to 110,000 MTPA.
- MDP/NDC capacity is being expanded six-fold from 5,000 MTPA to 30,000 MTPA.
- The sorbitol and MDP/NDC expansion projects are targeted for commissioning in April 2027.
- A 6 MW green hydrogen plant will be established at the sorbitol manufacturing facility under a BOO model.
New orders
- The company has ₹1,305 crore of ethanol orders for 19.7 crore litres allocated for ESY 2026-27.
New initiatives
- The company partnered with Zero Footprint Industries Limited to establish a green hydrogen plant at its sorbitol facility.
- The green hydrogen initiative is expected to reduce carbon emissions by 15,000 TPA and cut hydrogen procurement costs by 20%.
Competition
- The company says the sorbitol expansion positions it among India's largest sorbitol manufacturers.
- The company describes itself as a leader in 70% sorbitol exports.
Problems & risks
- The company is addressing rising maize costs through greater use of FCI rice and damaged food grains.
What to watch
- Whether standalone operating margin recovers from 11.27% after the 2.00 percentage-point sequential decline.
- Progress towards the sorbitol and MDP/NDC projects targeted for commissioning in April 2027.
- Whether greater use of FCI rice and damaged food grains limits the effect of rising maize costs.