Revenue rose 13.58%, but faster costs narrowed Manorama's margin
Consolidated net profit grew just 2.73% sequentially as higher interest and lower other income offset operating profit growth.
Filed 12 Nov 2026, 19:36 IST · after market close · Manorama Industries Ltd (MANORAMA)
Key takeaways
- Consolidated revenue grew +13.58% sequentially, but expenses grew faster at +14.40%, narrowing operating margin by 0.53 percentage points.
- Net profit rose only +2.73% sequentially as interest costs increased +14.95% and other income fell -40.11%.
- Manorama's 25.76% operating margin was 15.04 percentage points above the 10.72% median for 73 reported FMCG peers.
Price around the results
Revenue growth did not fully reach net profit
Manorama Industries' consolidated revenue increased +13.58% sequentially to Rs 458.86 cr, while operating profit grew +11.27% to Rs 118.18 cr. Net profit rose only +2.73% to Rs 80.81 cr, showing that the operating improvement was diluted below the operating line. EPS declined -5.54% to Rs 12.44.
Faster expenses and interest weighed on the quarter
Expenses grew +14.40%, faster than revenue, which reduced operating margin by 0.53 percentage points to 25.76%. Interest increased +14.95%, while other income fell -40.11%; other income still represented 8.79% of profit before tax, so the lower contribution limited profit growth. The tax rate also rose by 0.63 percentage points to 26.66%.
Margin remains well above the reported FMCG peer median
Manorama's 25.76% operating margin was 15.04 percentage points above the 10.72% median among 73 FMCG peers that had reported the quarter. The available quarter-on-quarter trend shows a second consecutive quarter in the supplied series, with margin moving down from 26.29% in Q1FY27 to 25.76% in Q2FY27. Management said consumer preference for plant-based and naturally sourced ingredients is driving demand for specialty cosmetic oils and butters.
Management outlined capacity and integration plans
Management said demand drivers support its integrated specialty fats proposition and presented plans to debottleneck fractionation capacity and add refining capability through forward integration. The company said it proposes capex over the next 2–3 years and is planning a 15 MW captive solar power plant as part of its renewable-energy and decarbonisation strategy. The results were filed after market close, so a market reaction is not yet part of this read.
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 | ₹459 cr | ₹404 cr | +13.58% |
| Other income | ₹10 cr | ₹16 cr | -40.11% |
| Expenses | ₹341 cr | ₹298 cr | +14.40% |
| Operating profit | ₹118 cr | ₹106 cr | +11.27% |
| Operating margin (%) | 25.76% | 26.29% | — |
| Interest | ₹11 cr | ₹10 cr | +14.95% |
| Depreciation | ₹6 cr | ₹6 cr | +2.44% |
| Profit before tax | ₹110 cr | ₹106 cr | +3.62% |
| Tax | ₹29 cr | ₹28 cr | +6.14% |
| Net profit | ₹81 cr | ₹79 cr | +2.73% |
| EPS (₹) | ₹12.44 | ₹13.17 | -5.54% |
Operating margin of 25.76% compares with a Fast Moving Consumer Goods sector median of 10.72% across 73 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.
Guidance & outlook
- Consumer preference for plant-based and naturally sourced ingredients is driving demand for specialty cosmetic oils and butters.
- The company says strong demand drivers support its integrated specialty fats proposition.
Expansion
- The company proposes capex over the next 2–3 years.
- The company plans to debottleneck fractionation capacity.
- The company plans to add refining capability through a forward-integration programme.
- The company is planning a 15 MW captive solar power plant.
- The company has acquired land for capex.
New initiatives
- The company plans strategic partnerships and customer access across newer markets.
- Execution priorities include R&D-led product innovation.
- Execution priorities include operational efficiency across the integrated value chain.
- The company organized the VANSAKHI programme to train villagers and collectors on forest and wildlife conservation.
- The Jabari Bestaan initiative will expand into shea-growing regions with an objective of reaching up to 100,000 beneficiaries.
What to watch
- Whether operating margin holds above 25.76% after the 0.53 percentage-point sequential decline.
- Whether interest-cost growth moderates from +14.95% and other income remains below its 8.79% share of profit before tax.
- Updates on the reported 15 MW captive solar plan and the proposed 2–3 year capex programme.