Linc revenue grows, but faster costs cut operating margin
Consolidated operating margin fell to 7.34% qoq as expenses outpaced revenue, while a lower tax rate partly cushioned the profit decline.
Filed 05 Nov 2026, 18:57 IST · after market close · Linc Ltd (LINC)
Key takeaways
- Revenue rose +10.92% qoq, but expenses grew +12.57%, reducing operating margin by 1.36 percentage points to 7.34%.
- Net profit declined -14.05% qoq as profit before tax fell -15.81%, despite the tax rate easing by 1.64 percentage points to 24.29%.
- Linc's 7.34% operating margin was 3.35 percentage points below the 10.69% median for 62 reported FMCG peers.
Price around the results
Revenue momentum did not convert into profit growth
Consolidated revenue increased +10.92% qoq, but operating profit declined -6.45% as expenses rose faster than sales. The operating margin fell from 8.70% in Q1FY27 to 7.34% in Q2FY27, marking a sequential deterioration in conversion of revenue into operating profit.
Higher operating costs were joined by rising below-the-line charges
Expenses grew +12.57% qoq against revenue growth of +10.92%, driving the 1.36-percentage-point margin decline. Interest increased +6.58% and depreciation rose +10.13%, adding to the pressure below operating profit. Other income contributed 9.02% of profit before tax, while the lower 24.29% tax rate partly softened the decline in net profit.
Margin remains below the reported FMCG peer median
Linc's 7.34% operating margin was 3.35 percentage points below the 10.69% median among 62 FMCG companies that had reported the same quarter. With no year-on-year comparison in the reported results, the clearest direction is the qoq decline from 8.70% to 7.34%.
Results were filed after market close
Linc filed its consolidated Q2FY27 results after market close on 5 November 2026 at 18:57 IST. The reported quarter therefore shows weaker sequential profitability without a post-filing market reaction to assess here.
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 | ₹154 cr | ₹139 cr | +10.92% |
| Other income | ₹1 cr | ₹1 cr | -8.82% |
| Expenses | ₹143 cr | ₹127 cr | +12.57% |
| Operating profit | ₹11 cr | ₹12 cr | -6.45% |
| Operating margin (%) | 7.34% | 8.70% | — |
| Interest | ₹1 cr | ₹1 cr | +6.58% |
| Depreciation | ₹4 cr | ₹4 cr | +10.13% |
| Profit before tax | ₹7 cr | ₹8 cr | -15.81% |
| Tax | ₹2 cr | ₹2 cr | -21.23% |
| Net profit | ₹5 cr | ₹6 cr | -14.05% |
| EPS (₹) | ₹0.70 | ₹0.98 | -28.57% |
Operating margin of 7.34% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.34% next quarter.
- Whether expense growth moderates from +12.57% qoq.
- Whether the tax rate remains near 24.29% without further support from other income.