MMP margin slips as costs outpace revenue; stock falls 6.04%
Q2 revenue rose 8.63% QoQ, but operating margin fell 1.37 percentage points and other income made up 18.95% of pre-tax profit.
Filed 02 Nov 2026, 13:46 IST · MMP Industries Ltd (MMP)
Key takeaways
- Consolidated operating margin fell 1.37 percentage points QoQ to 7.57% as expenses grew 10.27%, faster than revenue at 8.63%.
- Consolidated net profit fell 11.61% QoQ to Rs 12.11 cr, while other income contributed 18.95% of pre-tax profit.
- MMP's stock fell 6.04% on results day, with a -7.72% relative reaction and volume at 2.14 times normal.
Price around the results
Revenue growth did not cover the cost increase
MMP's consolidated revenue grew 8.63% QoQ, but expenses increased 10.27%, reducing operating profit by 8.08%. That cost-revenue mismatch cut operating margin from 8.94% in Q1FY27 to 7.57% in Q2FY27, a decline of 1.37 percentage points.
Lower profit also reflected below-operating-line pressure
Profit before tax declined 11.20% QoQ, as interest expense rose 2.99% and other income fell 3.30%. Other income accounted for 18.95% of pre-tax profit, so reported earnings included a meaningful non-operating contribution. The tax rate increased by 0.37 percentage points to 21.69%, providing no tax-rate benefit to offset the operating pressure.
Margin remains below the commodities peer median
MMP's 7.57% operating margin was 7.06 percentage points below the 14.63% median for the 75 commodities companies that had reported. The company ranked 16th from the bottom on this measure. The sequential decline from 8.94% also marks a weaker second quarter in the available trend.
Shares fell sharply with higher trading volume
The stock declined 6.04% on the results date and underperformed on a relative basis by 7.72%. Trading volume was 2.14 times normal, indicating a heavier market response than usual activity.
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 | ₹253 cr | ₹233 cr | +8.63% |
| Other income | ₹3 cr | ₹3 cr | -3.30% |
| Expenses | ₹234 cr | ₹212 cr | +10.27% |
| Operating profit | ₹19 cr | ₹21 cr | -8.08% |
| Operating margin (%) | 7.57% | 8.94% | — |
| Interest | ₹3 cr | ₹3 cr | +2.99% |
| Depreciation | ₹3 cr | ₹3 cr | +2.94% |
| Profit before tax | ₹15 cr | ₹17 cr | -11.20% |
| Tax | ₹3 cr | ₹4 cr | -9.70% |
| Net profit | ₹12 cr | ₹14 cr | -11.61% |
| EPS (₹) | ₹4.77 | ₹5.39 | -11.50% |
Operating margin of 7.57% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.04% | -7.72% |
Volume on the results session was 2.14× its 20-day average.
What to watch
- Whether operating margin recovers from 7.57% after falling 1.37 percentage points QoQ.
- Whether expense growth moderates from 10.27% against revenue growth of 8.63%.
- Whether other income remains close to 18.95% of pre-tax profit.