K P R Mill margin jumps as expenses fall sequentially
Revenue was broadly flat sequentially, but a 7.60% decline in expenses lifted operating margin by 6.29 percentage points.
Filed 28 Oct 2026, 15:26 IST · K P R Mill Ltd (KPRMILL)
Key takeaways
- Consolidated operating margin rose 6.41 percentage points year on year to 25.66% as expenses grew 9.43% against 18.85% revenue growth.
- Net profit increased 58.24% year on year, but the 28.03% tax rate was 8.16 percentage points higher and other income contributed 10.25% of pre-tax profit.
- The stock rose 5.34% on results day, well above its 1.72% median move after the previous eight results.
Price around the results
Margin rebound lifts an otherwise flat sequential quarter
Consolidated revenue grew 18.85% year on year, while operating profit rose 58.38%, showing that profit growth outpaced sales. Sequentially, revenue increased only 0.22%, but expenses fell 7.60%, lifting operating margin by 6.29 percentage points. This is a sharp reversal after margins remained between 19.25% and 20.07% in the previous four reported quarters.
Higher tax and other income temper profit quality
The 28.03% tax rate was 8.16 percentage points above last year and 4.39 percentage points above the previous quarter, limiting the conversion of pre-tax profit into net profit. Other income more than doubled year on year and accounted for 10.25% of pre-tax profit, so part of the earnings increase came from below-operating-line income. Interest expense fell 3.84% year on year and 19.00% sequentially, while depreciation increased 3.40% year on year.
Operating margin remains well above the consumer discretionary median
K P R Mill's 25.66% operating margin was 12.64 percentage points above the 13.02% median among 84 Consumer Discretionary peers that had reported the quarter. The quarter also marks the strongest margin in the six-quarter trend, after the metric had edged down from 20.07% in Q3FY26 to 19.37% in Q1FY27.
Market reaction was unusual for the stock
The stock rose 5.34% on the results day, with trading volume at 11.31 times the reference level. That move was notably larger than the 1.72% median absolute move after the previous eight results, which were split evenly between four rises and four falls.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹1,940 cr | ₹1,936 cr | +0.22% | +18.85% |
| Other income | ₹49 cr | ₹35 cr | +41.42% | +105.31% |
| Expenses | ₹1,442 cr | ₹1,561 cr | -7.60% | +9.43% |
| Operating profit | ₹498 cr | ₹375 cr | +32.77% | +58.38% |
| Operating margin (%) | 25.66% | 19.37% | — | — |
| Interest | ₹12 cr | ₹15 cr | -19.00% | -3.84% |
| Depreciation | ₹56 cr | ₹56 cr | -1.49% | +3.40% |
| Profit before tax | ₹479 cr | ₹339 cr | +41.60% | +76.18% |
| Tax | ₹134 cr | ₹80 cr | +67.95% | +148.55% |
| Net profit | ₹345 cr | ₹259 cr | +33.44% | +58.24% |
| EPS (₹) | ₹10.09 | ₹7.56 | +33.47% | +58.15% |
Operating margin of 25.66% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.34% | +5.56% |
Volume on the results session was 11.31× its 20-day average.
What to watch
- Whether operating margin holds above 25.66% after the sharp sequential improvement.
- Whether expenses remain below the prior-quarter level after falling 7.60% sequentially.
- Whether other income remains close to 10.25% of pre-tax profit and the tax rate moves from 28.03%.