HMA Agro margin improves, but remains below FMCG peer median
Revenue growth outpaced expenses qoq, although other income remained a material part of pre-tax profit.
Filed 03 Nov 2026, 13:08 IST · HMA Agro Industries Ltd (HMAAGRO)
Key takeaways
- Consolidated operating margin expanded 3.84 percentage points qoq to 4.28% as revenue growth outpaced expense growth.
- Net profit rose 107.03% qoq to Rs 104.57 cr, while other income still contributed 26.08% of pre-tax profit.
- Operating margin remained 6.38 percentage points below the 10.66% median of 45 FMCG peers that had reported.
Price around the results
Revenue acceleration drives operating leverage
Consolidated revenue grew 31.71% qoq to Rs 2,779.48 cr, while expenses increased 26.63%. The faster revenue growth lifted operating profit by 1182.22% qoq to Rs 118.99 cr, from a low Q1FY27 base.
Margin recovery came with mixed profit quality
Operating margin rose 3.84 percentage points qoq to 4.28% because costs grew more slowly than revenue. Other income fell 51.86% qoq but still accounted for 26.08% of pre-tax profit, making it a material contributor to reported earnings. The tax rate increased 1.88 percentage points and interest expense rose 19.66%, partly offsetting the operating improvement.
Margin improved sequentially but trails sector peers
The operating margin recovered from 0.44% in Q1FY27 to 4.28% in Q2FY27, reversing the immediate sequential deterioration visible in the trend. It was nevertheless 6.38 percentage points below the 10.66% median for 45 Fast Moving Consumer Goods companies that had reported.
Initial market reaction was negative
The shares fell 0.48% on the filing date, with a relative move of -2.06% and volume at 3.12x the reference level. The initial price response was negative despite the sequential improvement in operating margin.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,779 cr | ₹2,110 cr | +31.71% |
| Other income | ₹35 cr | ₹72 cr | -51.86% |
| Expenses | ₹2,660 cr | ₹2,101 cr | +26.63% |
| Operating profit | ₹119 cr | ₹9 cr | +1182.22% |
| Operating margin (%) | 4.28% | 0.44% | — |
| Interest | ₹14 cr | ₹12 cr | +19.66% |
| Depreciation | ₹7 cr | ₹7 cr | +3.09% |
| Profit before tax | ₹132 cr | ₹63 cr | +111.93% |
| Tax | ₹28 cr | ₹12 cr | +132.58% |
| Net profit | ₹105 cr | ₹51 cr | +107.03% |
| EPS (₹) | ₹2.08 | ₹1.01 | +105.94% |
Operating margin of 4.28% compares with a Fast Moving Consumer Goods sector median of 10.66% across 45 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.48% | -2.06% |
Volume on the results session was 3.12× its 20-day average.
What to watch
- Whether operating margin holds above 4.28% after the 3.84-percentage-point sequential recovery.
- Whether other income's 26.08% share of pre-tax profit becomes less material.
- Whether revenue growth continues to outpace expense growth after +31.71% versus +26.63% qoq.