KPR Mill profit rises 21.55% as annual margin improves
Revenue growth outpaced costs year on year, though sequential margin eased as expenses grew faster and other income fell.
Filed 10 Aug 2026, 16:02 IST · after market close · K P R Mill Ltd (KPRMILL)
Key takeaways
- Consolidated net profit rose 21.55% year on year as revenue grew 9.58% and expenses grew 7.19%.
- Operating margin expanded 1.80 percentage points year on year, but narrowed 0.15 percentage points sequentially as costs grew faster than revenue.
- Other income contributed 10.26% of pre-tax profit, while the 5.32-percentage-point sequential fall in the tax rate supported net profit growth.
Price around the results
Annual growth came with better operating leverage
KPR Mill reported consolidated revenue growth of +9.58% year on year, while expenses grew +7.19%, lifting operating profit by +20.82%. That spread improved operating margin by 1.80 percentage points to 19.37%. Sequentially, revenue increased +8.45%, but expenses grew +8.66%, limiting operating-profit growth to +7.62%.
Sequential margin eased after two quarters of improvement
Operating margin declined 0.15 percentage points from Q4FY26 because costs grew faster than revenue. The current margin remains above Q1FY26, but the trend shows a second consecutive quarterly decline after 20.07% in Q3FY26 and 19.52% in Q4FY26. The 23.64% tax rate was 5.32 percentage points lower sequentially, helping net profit grow +13.81% despite the softer operating margin.
Profit quality merits attention
Other income accounted for 10.26% of pre-tax profit, making it a meaningful contributor to reported earnings. Other income fell -14.24% sequentially and -3.45% year on year, so the quarter's profit growth was primarily supported by operating performance rather than an increase in this non-operating item. Interest expense also fell -0.89% sequentially but rose +4.53% year on year.
Results were filed after market close
The consolidated results were filed after market close, so there was no market reaction to report yet. Across the stock's previous eight results reactions, five were negative and three positive, with a median absolute move of 1.72%, indicating a mixed but generally downward historical response.
Margin remains above the reported peer median
KPR Mill's 19.37% operating margin was 6.07 percentage points above the 13.30% median for the 137 Consumer Discretionary peers that had reported the same quarter. This places the company above the sector median despite the sequential margin easing.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,936 cr | ₹1,785 cr | +8.45% | +9.58% |
| Other income | ₹35 cr | ₹41 cr | -14.24% | -3.45% |
| Expenses | ₹1,561 cr | ₹1,436 cr | +8.66% | +7.19% |
| Operating profit | ₹375 cr | ₹348 cr | +7.62% | +20.82% |
| Operating margin (%) | 19.37% | 19.52% | — | — |
| Interest | ₹15 cr | ₹15 cr | -0.89% | +4.53% |
| Depreciation | ₹56 cr | ₹54 cr | +3.96% | +6.12% |
| Profit before tax | ₹339 cr | ₹320 cr | +5.87% | +21.30% |
| Tax | ₹80 cr | ₹93 cr | -13.61% | +20.51% |
| Net profit | ₹259 cr | ₹227 cr | +13.81% | +21.55% |
| EPS (₹) | ₹7.56 | ₹6.65 | +13.68% | +21.54% |
Operating margin of 19.37% compares with a Consumer Discretionary sector median of 13.30% across 137 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 19.37% after the second consecutive quarterly decline.
- Whether other income stays below its 10.26% share of pre-tax profit.