Revenue doubled sequentially, but Megastar's margin stayed at 5.94%
Revenue grew slightly faster than expenses, yet a 126.07% rise in interest expense kept profit conversion under pressure.
Filed 02 Nov 2026, 16:05 IST · after market close · Megastar Foods Ltd (MEGASTAR)
Key takeaways
- Consolidated revenue rose 103.55% sequentially, while operating margin improved only 0.31 percentage points to 5.94%.
- Interest expense increased 126.07% sequentially, limiting the benefit of faster operating-profit growth to net profit growth of 113.45%.
- Megastar's 5.94% operating margin was 6.18 percentage points below the 12.12% median for 41 reported FMCG peers.
Price around the results
Scale-up lifted Q2FY27 operating profit
Megastar reported consolidated revenue growth of 103.55% from Q1FY27, with operating profit rising 114.88%. Revenue grew slightly faster than expenses, which lifted operating margin by 0.31 percentage points to 5.94%. This was a sequential comparison, as no year-on-year comparison was provided.
Higher interest costs offset operating gains
Expenses increased 102.87%, just below revenue growth, so the margin improvement came from operating leverage rather than cost compression. Interest expense rose 126.07% and depreciation increased 101.30%, which limited profit before tax growth to 111.15% despite the faster rise in operating profit. The 0.64-percentage-point decline in the tax rate provided a modest benefit, while other income contributed 5.12% of profit before tax.
Margin remains below the FMCG peer median
Megastar's 5.94% operating margin was below the 12.12% median among 41 FMCG peers that had reported the same quarter. The company was 6.18 percentage points below that median and ranked 12th from the bottom. The available quarterly trend shows a small margin improvement from 5.63% in Q1FY27, rather than a multi-quarter direction.
Results were filed after market close
The consolidated results were filed after market close on 02 Nov 2026. No post-results stock reaction is covered 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 | ₹270 cr | ₹133 cr | +103.55% |
| Other income | ₹0 cr | ₹0 cr | +50.00% |
| Expenses | ₹254 cr | ₹125 cr | +102.87% |
| Operating profit | ₹16 cr | ₹7 cr | +114.88% |
| Operating margin (%) | 5.94% | 5.63% | — |
| Interest | ₹5 cr | ₹2 cr | +126.07% |
| Depreciation | ₹5 cr | ₹2 cr | +101.30% |
| Profit before tax | ₹6 cr | ₹3 cr | +111.15% |
| Tax | ₹2 cr | ₹1 cr | +104.88% |
| Net profit | ₹5 cr | ₹2 cr | +113.45% |
| EPS (₹) | ₹4.22 | ₹1.98 | +113.13% |
Operating margin of 5.94% compares with a Fast Moving Consumer Goods sector median of 12.12% across 41 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 5.94% after the 0.31-percentage-point sequential improvement.
- Whether interest expense moderates from its 126.07% sequential increase.
- Whether revenue remains above the Q1FY27 level of Rs 132.57 cr.