IFB Agro margin edges up, but trails FMCG peers by 4.08 points
Revenue growth narrowly exceeded expense growth sequentially, while other income remained a notable contributor to pre-tax profit.
Filed 02 Nov 2026, 18:17 IST · after market close · IFB Agro Industries Ltd (IFBAGRO)
Key takeaways
- Consolidated operating margin improved 0.27 percentage points QoQ as revenue growth of +19.42% slightly outpaced expense growth of +19.07%.
- Net profit rose +25.21% QoQ to Rs 25.48 cr, but other income contributed 16.42% of pre-tax profit and the tax rate increased 1.87 percentage points.
- IFB Agro's 8.18% operating margin was 4.08 percentage points below the 12.26% median for 38 reported FMCG peers.
Price around the results
Revenue growth translated into modest operating leverage
IFB Agro's consolidated Q2FY27 revenue increased +19.42% QoQ, while operating profit grew faster at +23.50%. Expenses rose +19.07%, just below revenue growth, lifting operating margin by 0.27 percentage points. Net profit increased +25.21% as profit before tax grew +28.26%.
Other income and tax rate shaped reported earnings
Below operating profit, interest rose +8.61% and depreciation increased +2.70% QoQ. Other income of Rs 5.44 cr accounted for 16.42% of pre-tax profit, making it a meaningful part of reported earnings. The tax rate also rose 1.87 percentage points to 23.09%, limiting the conversion of pre-tax profit growth into net profit growth.
Margin remains below the reported FMCG peer median
IFB Agro's 8.18% operating margin was below the 12.26% median among 38 FMCG companies that had reported the same quarter. The 4.08-percentage-point gap leaves the company 14th from the bottom in the reported peer set.
Results were filed after market close
The consolidated results were filed after market close on 02 Nov 2026. There is therefore no post-results market reaction to assess yet, and the stock's usual response after results cannot be compared for this quarter.
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 | ₹475 cr | ₹398 cr | +19.42% |
| Other income | ₹5 cr | ₹5 cr | +5.63% |
| Expenses | ₹436 cr | ₹366 cr | +19.07% |
| Operating profit | ₹39 cr | ₹31 cr | +23.50% |
| Operating margin (%) | 8.18% | 7.91% | — |
| Interest | ₹2 cr | ₹2 cr | +8.61% |
| Depreciation | ₹10 cr | ₹9 cr | +2.70% |
| Profit before tax | ₹33 cr | ₹26 cr | +28.26% |
| Tax | ₹8 cr | ₹5 cr | +39.60% |
| Net profit | ₹25 cr | ₹20 cr | +25.21% |
| EPS (₹) | ₹27.21 | ₹21.72 | +25.28% |
Operating margin of 8.18% 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 above 8.18% after the 0.27-percentage-point QoQ improvement.
- Whether expenses continue to grow no faster than revenue, after +19.07% versus +19.42% in Q2FY27.
- Whether other income's 16.42% share of pre-tax profit persists or reduces.