Kanpur Plastipack's margin expands as revenue growth outpaces costs
Consolidated net profit rose +37.50% sequentially, helped by a lower tax rate and lower interest expense, though other income remained material.
Filed 27 Oct 2026, 16:34 IST · after market close · Kanpur Plastipack Ltd (KANPRPLA)
Key takeaways
- Consolidated revenue rose +16.07% QoQ while expenses grew +14.11%, lifting operating margin by 1.56 percentage points to 9.62%.
- Net profit increased +37.50% QoQ as the tax rate fell 3.80 percentage points and interest expense declined 6.20%.
- Other income contributed 18.51% of pre-tax profit, while operating margin remained 1.32 percentage points below the median for 35 Industrials peers.
Price around the results
Revenue momentum improved operating leverage
Kanpur Plastipack reported consolidated revenue growth of +16.07% QoQ in Q2FY27, faster than the +14.11% increase in expenses. That spread lifted operating margin by 1.56 percentage points to 9.62%, indicating better operating leverage than in Q1FY27.
Tax and interest amplified the profit increase
Net profit rose +37.50% QoQ, ahead of operating profit growth of +38.49%, as interest expense fell 6.20% and the tax rate declined by 3.80 percentage points to 23.22%. Profit quality was partly supported by other income, which represented 18.51% of pre-tax profit.
Margin trails the Industrials peer median
The company's 9.62% operating margin was 1.32 percentage points below the 10.94% median among 35 Industrials peers that had reported the quarter. The investor presentation said KPL is establishing a non-woven product platform based on needle-punch technology, adding a new initiative beyond the quarter's reported operating improvement.
Results were filed after market close
The consolidated results were filed after market close on 27 October 2026. The stock's post-results move is not assessed here because the filing was too recent for a market reaction.
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 | ₹236 cr | ₹204 cr | +16.07% |
| Other income | ₹4 cr | ₹5 cr | -27.12% |
| Expenses | ₹214 cr | ₹187 cr | +14.11% |
| Operating profit | ₹23 cr | ₹16 cr | +38.49% |
| Operating margin (%) | 9.62% | 8.06% | — |
| Interest | ₹3 cr | ₹3 cr | -6.20% |
| Depreciation | ₹3 cr | ₹3 cr | +4.35% |
| Profit before tax | ₹21 cr | ₹16 cr | +30.69% |
| Tax | ₹5 cr | ₹4 cr | +12.50% |
| Net profit | ₹16 cr | ₹12 cr | +37.50% |
| EPS (₹) | ₹6.54 | ₹4.68 | +39.74% |
Operating margin of 9.62% compares with a Industrials sector median of 10.94% across 35 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.
New initiatives
- KPL is establishing a non-woven product platform based on needle-punch technology.
What to watch
- Whether operating margin holds above the current 9.62% in the next quarter.
- Whether other income remains close to or below its current 18.51% share of pre-tax profit.
- Whether the tax rate stays near 23.22% after its 3.80-percentage-point sequential decline.