Murudeshwar Ceramics' margin falls 5.05 pp as costs outpace revenue
Consolidated revenue rose 12.34% QoQ, but expenses grew 19.35%; lower tax and other income drove the 90.12% rise in net profit.
Filed 12 Nov 2026, 13:09 IST · Murudeshwar Ceramics Ltd (MURUDCERA)
Key takeaways
- Consolidated operating margin fell 5.05 percentage points QoQ as expenses grew +19.35%, faster than revenue at +12.34%.
- Net profit rose +90.12% QoQ, but other income contributed 84.46% of pre-tax profit and the tax rate fell 17.94 percentage points.
- Operating margin at 14.06% remained 2.83 percentage points above the 11.23% median for 329 Consumer Discretionary peers.
Price around the results
Revenue growth did not translate into operating profit
Murudeshwar Ceramics' consolidated revenue rose +12.34% QoQ to Rs 56.27 cr, but operating profit fell as expenses increased +19.35% to Rs 48.36 cr. The faster cost growth reduced operating margin to 14.06%, down 5.05 percentage points from Q1FY27. Interest also rose +5.90%, while depreciation was unchanged.
Net profit was helped by tax and other income
Net profit increased +90.12% QoQ to Rs 1.54 cr even as operating profit declined, because the tax rate fell 17.94 percentage points to 48.09%. Other income of Rs 2.50 cr accounted for 84.46% of pre-tax profit, making the reported profit less reflective of operating earnings.
Margin stays above the reported peer median
The 14.06% operating margin was 2.83 percentage points above the 11.23% median among 329 reported Consumer Discretionary peers. Sequentially, however, margin moved down from 19.11% in Q1FY27, marking a clear quarter-on-quarter deterioration even without a year-on-year comparison.
The stock ended nearly flat on the filing date
The stock's day-zero return was +0.07%, despite an opening gap of -1.62%; the volume ratio was 0.78. The close therefore showed limited immediate price movement after the results, while the opening move was more negative.
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 | ₹56 cr | ₹50 cr | +12.34% |
| Other income | ₹3 cr | ₹0 cr | +4066.67% |
| Expenses | ₹48 cr | ₹41 cr | +19.35% |
| Operating profit | ₹8 cr | ₹10 cr | -17.43% |
| Operating margin (%) | 14.06% | 19.11% | — |
| Interest | ₹4 cr | ₹3 cr | +5.90% |
| Depreciation | ₹4 cr | ₹4 cr | +0.00% |
| Profit before tax | ₹3 cr | ₹2 cr | +24.37% |
| Tax | ₹1 cr | ₹2 cr | -9.55% |
| Net profit | ₹2 cr | ₹1 cr | +90.12% |
| EPS (₹) | ₹0.25 | ₹0.13 | +92.31% |
Operating margin of 14.06% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.07% | -0.11% |
Volume on the results session was 0.78× its 20-day average.
What to watch
- Whether operating margin recovers from 14.06% after the 5.05 percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue after rising +19.35% versus +12.34% QoQ.
- Whether other income remains a large contributor after accounting for 84.46% of pre-tax profit.