Kwality Walls Q1 margin trails FMCG peers by 4.33 points
Standalone profit included Rs 15.0 cr of other income against Rs 67.7 cr of pre-tax profit; the results were filed after market close.
Filed 14 Aug 2026, 21:06 IST · after market close · Kwality Walls India Ltd (KWIL)
Key takeaways
- Kwality Walls India reported standalone net profit of Rs 50.7 cr and EPS of Rs 0.22 in Q1FY27.
- Operating margin was 11.77%, 4.33 percentage points below the 16.1% median for 45 reported FMCG peers.
- The stock rose +7.78% on the first trading day after results and gained +35.12% by day five, with first-day volume at 7.39 times normal.
Price around the results
Q1FY27 profit reflects a Rs 103.4 cr operating base
Kwality Walls India reported standalone revenue of Rs 878.3 cr and operating profit of Rs 103.4 cr for Q1FY27. After depreciation of Rs 40.3 cr and interest of Rs 10.4 cr, profit before tax was Rs 67.7 cr; other income contributed Rs 15.0 cr. Tax was Rs 17.0 cr at a 25.11% tax rate, leaving net profit of Rs 50.7 cr.
Operating margin sits below the reported FMCG peer median
The company's 11.77% operating margin was 4.33 percentage points below the 16.1% median among 45 FMCG peers that had reported the quarter. The gap places Kwality Walls 14th from the bottom on the sector comparison provided. With no quarter-on-quarter or year-on-year driver data, the result does not establish whether revenue growth or cost growth drove the margin position.
Stock reaction was sharply positive after the filing
The results were filed after market close on 14 August 2026. The stock gained +7.78% on the first trading day, including a +0.31% opening gap, and was up +35.12% by the fifth trading day; its relative return at day five was +35.72%. First-day volume was 7.39 times normal.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹878 cr |
| Other income | ₹15 cr |
| Expenses | ₹775 cr |
| Operating profit | ₹103 cr |
| Operating margin (%) | 11.77% |
| Interest | ₹10 cr |
| Depreciation | ₹40 cr |
| Profit before tax | ₹68 cr |
| Tax | ₹17 cr |
| Net profit | ₹51 cr |
| EPS (₹) | ₹0.22 |
Operating margin of 11.77% compares with a Fast Moving Consumer Goods sector median of 16.10% across 45 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +7.78% | +8.10% |
| Next session | +5.86% | — |
| 5 sessions | +35.12% | +35.72% |
| 15 sessions | +14.23% | — |
Volume on the results session was 7.39× its 20-day average.
What to watch
- Whether operating margin moves above or below 11.77% in the next reported quarter.
- Whether interest expense remains near the Rs 10.4 cr reported in Q1FY27.
- Whether other income stays at Rs 15.0 cr relative to profit before tax of Rs 67.7 cr.