Margin rebounds, but other income exceeds pre-tax profit
Consolidated operating margin improved sequentially, but a -41.11% tax rate and other income above pre-tax profit shaped net profit.
Filed 12 Nov 2026, 14:57 IST · Indo National Ltd (NIPPOBATRY)
Key takeaways
- Revenue grew +10.09% QoQ while expenses grew +5.51%, lifting operating margin by 4.15 percentage points.
- Other income was +111.54% of pre-tax profit, making reported profit dependent on non-operating income.
- The stock fell -0.67% on the filing day, with volume ratio at 3.43x.
Price around the results
Revenue growth outpaced costs in Q2FY27
Indo National’s consolidated revenue rose +10.09% QoQ, while expenses increased +5.51%. The faster revenue growth lifted operating margin by 4.15 percentage points to 4.26%, reversing the 0.11% margin recorded in Q1FY27.
Non-operating items drove the reported profit
Interest increased +95.45% QoQ and depreciation rose +16.67%, limiting the benefit from the operating improvement. Other income amounted to +111.54% of pre-tax profit, while the tax rate was -41.11%, indicating that a tax benefit also supported net profit. Net profit rose +8.96% even as EPS fell -77.19% to Rs 0.65.
Margin remains below the FMCG peer median
The 4.26% operating margin was 6.43 percentage points below the 10.69% median for 74 Fast Moving Consumer Goods peers that had reported the quarter. The sequential direction improved from Q1FY27, but the margin still ranked 16th from the bottom among those reported peers.
Shares slipped on the filing day
The stock fell -0.67% on 12 November, with a 0.05% opening gap and a -0.85% relative return. The volume ratio was 3.43x.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹128 cr | ₹116 cr | +10.09% |
| Other income | ₹2 cr | ₹1 cr | +93.33% |
| Expenses | ₹122 cr | ₹116 cr | +5.51% |
| Operating profit | ₹5 cr | ₹0 cr | +4441.67% |
| Operating margin (%) | 4.26% | 0.11% | — |
| Interest | ₹2 cr | ₹1 cr | +95.45% |
| Depreciation | ₹4 cr | ₹3 cr | +16.67% |
| Profit before tax | ₹2 cr | ₹-3 cr | — |
| Tax | ₹-1 cr | ₹-5 cr | +87.76% |
| Net profit | ₹2 cr | ₹2 cr | +8.96% |
| EPS (₹) | ₹0.65 | ₹2.85 | -77.19% |
Operating margin of 4.26% compares with a Fast Moving Consumer Goods sector median of 10.69% across 74 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.67% | -0.85% |
Volume on the results session was 3.43× its 20-day average.
What to watch
- Whether operating margin holds above 4.26% after the Q1FY27-to-Q2FY27 rebound.
- Whether the tax rate moves away from -41.11% in the next quarter.
- Whether other income remains as large as 111.54% of pre-tax profit.