Mukka's margin slips as costs outpace revenue growth
Consolidated net profit fell 4.83% QoQ after a higher tax rate, while other income accounted for 28.68% of profit before tax.
Filed 07 Nov 2026, 12:50 IST · after market close · MUKKA (MUKKA)
Key takeaways
- Consolidated operating margin narrowed 1.49 percentage points QoQ to 8.31% as expenses grew 5.64%, faster than revenue at 3.93%.
- Net profit fell 4.83% QoQ even though profit before tax was unchanged, as the tax rate rose 3.31 percentage points to 35.24%.
- Other income accounted for 28.68% of consolidated profit before tax, making reported earnings partly reliant on non-operating income.
Revenue grew, but operating profit contracted
Mukka's consolidated revenue increased 3.93% QoQ, while operating profit declined 11.90%. Expenses rose 5.64%, outpacing revenue growth and reducing operating margin from 9.80% in Q1FY27 to 8.31%.
Higher costs and tax diluted earnings
Interest expense increased 4.19% QoQ and depreciation rose 16.67%, adding pressure below the operating line. Other income rose 1126.56% and contributed 28.68% of profit before tax, so the unchanged pre-tax profit was not driven only by operations. The tax rate increased from 31.93% to 35.24%, which contributed to the 4.83% decline in net profit.
Sequential margin direction and filing timing
The 8.31% operating margin was below Q1FY27's 9.80%, reversing the improvement seen from Q1FY26's 8.52% to Q1FY27. The company filed these consolidated results after market close on 07 Nov 2026, so the stock response is not 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 | ₹509 cr | ₹490 cr | +3.93% |
| Other income | ₹8 cr | ₹1 cr | +1126.56% |
| Expenses | ₹467 cr | ₹442 cr | +5.64% |
| Operating profit | ₹42 cr | ₹48 cr | -11.90% |
| Operating margin (%) | 8.31% | 9.80% | — |
| Interest | ₹17 cr | ₹16 cr | +4.19% |
| Depreciation | ₹6 cr | ₹5 cr | +16.67% |
| Profit before tax | ₹27 cr | ₹27 cr | +0.00% |
| Tax | ₹10 cr | ₹9 cr | +10.41% |
| Net profit | ₹18 cr | ₹19 cr | -4.83% |
| EPS (₹) | ₹0.53 | ₹0.63 | -15.87% |
What to watch
- Whether operating margin moves back above 8.31% after the 1.49-percentage-point QoQ decline.
- Whether expense growth slows from 5.64% relative to revenue growth of 3.93%.
- Whether other income remains a material contributor after accounting for 28.68% of profit before tax.