Costs outpaced revenue decline as Narmada margin fell to 3.62%
Consolidated Q2 revenue fell -7.91% QoQ, while higher interest and tax rates pushed net profit down -25.33%.
Filed 02 Nov 2026, 20:15 IST · after market close · Narmada Agrobase Ltd (NARMADA)
Key takeaways
- Consolidated revenue fell -7.91% QoQ, while expenses fell only -7.36%, narrowing operating margin by 0.63 percentage points to 3.62%.
- Net profit declined -25.33% QoQ to Rs 0.56 cr as interest expense rose +11.76% and the tax rate increased 4.31 percentage points.
- Other income contributed 37.5% of pre-tax profit, while the 3.62% operating margin was 8.64 percentage points below the 38-peer sector median.
Price around the results
Revenue fell faster than profit-generating capacity
Narmada Agrobase's consolidated revenue declined -7.91% QoQ to Rs 20.5 cr, but operating profit fell -22.11% to Rs 0.74 cr. The sharper operating-profit decline shows that the lower sales base did not translate proportionately into cost savings. Net profit fell -25.33% to Rs 0.56 cr, with EPS declining -65.00% to Rs 0.07.
Higher costs and weaker profit quality pressured margins
Expenses declined -7.36%, less than the -7.91% revenue decline, so operating margin narrowed by 0.63 percentage points to 3.62%. Interest expense rose +11.76% QoQ, while the tax rate increased 4.31 percentage points to 29.48%, adding to the pressure below operating profit. Other income accounted for 37.5% of pre-tax profit, making reported earnings less dependent on operations. Among 38 FMCG peers that have reported, Narmada's margin was 8.64 percentage points below the 12.26% median and ranked ninth from the bottom.
The filing came after market close
The company filed its consolidated Q2FY27 results after market close, so the market response is not part of this update. Sequentially, operating margin declined from 4.25% in Q1FY27 to 3.62% in Q2, while net profit fell from Rs 0.75 cr to Rs 0.56 cr.
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 | ₹21 cr | ₹22 cr | -7.91% |
| Other income | ₹0 cr | ₹0 cr | +7.14% |
| Expenses | ₹20 cr | ₹21 cr | -7.36% |
| Operating profit | ₹1 cr | ₹1 cr | -22.11% |
| Operating margin (%) | 3.62% | 4.25% | — |
| Interest | ₹0 cr | ₹0 cr | +11.76% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹1 cr | ₹1 cr | -20.79% |
| Tax | ₹0 cr | ₹0 cr | -4.00% |
| Net profit | ₹1 cr | ₹1 cr | -25.33% |
| EPS (₹) | ₹0.07 | ₹0.20 | -65.00% |
Operating margin of 3.62% compares with a Fast Moving Consumer Goods sector median of 12.26% across 38 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 20.5 cr after the -7.91% QoQ decline.
- Whether operating margin holds above 3.62% and narrows its gap with the 12.26% sector median.
- Whether other income's 37.5% share of pre-tax profit and the +11.76% rise in interest expense moderate.