N K Industries narrows loss, but operating margin remains negative
Lower expenses improved the quarter sequentially, yet the company ranked last among 22 reported FMCG peers on operating margin.
Filed 29 Oct 2026, 11:01 IST · N K Industries Ltd (NKIND)
Key takeaways
- Consolidated net loss narrowed 21.54% QoQ as expenses fell 3.36% while revenue rose 0.95%.
- Operating margin improved 4.93 percentage points to -8.07%, but remained 20.37 percentage points below the median of 22 reported FMCG peers.
- Depreciation stayed at Rs 0.59 cr, leaving profit before tax at a loss of Rs 0.51 cr despite Rs 0.25 cr of other income.
Price around the results
Loss narrowed as expenses fell faster than revenue
N K Industries reported a consolidated net loss of Rs 0.51 cr in Q2FY27, narrower than the Rs 0.65 cr loss in Q1FY27. Revenue rose 0.95% QoQ while expenses declined 3.36%, lifting operating profit by 37.04% and reducing the loss before tax by 27.14%.
Margin improved, but depreciation kept the company in the red
Operating margin improved by 4.93 percentage points QoQ because costs did not grow faster than revenue. It nevertheless remained negative at -8.07%, while depreciation was unchanged at Rs 0.59 cr. Other income of Rs 0.25 cr was equivalent to -49.02% of pre-tax profit because pre-tax profit was negative, and did not offset the operating loss and depreciation.
Second quarter below zero and weakest among reported peers
Operating margin fell from 13.37% in Q4FY26 to -13.00% in Q1FY27 before recovering to -8.07% in Q2FY27, leaving it below zero for a second consecutive quarter. The margin was 20.37 percentage points below the 12.30% median for 22 FMCG peers that had reported, placing N K Industries last in the comparison.
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 | ₹2 cr | ₹2 cr | +0.95% |
| Other income | ₹0 cr | ₹0 cr | +56.25% |
| Expenses | ₹2 cr | ₹2 cr | -3.36% |
| Operating profit | ₹-0 cr | ₹-0 cr | +37.04% |
| Operating margin (%) | -8.07% | -13.00% | — |
| Interest | ₹0 cr | ₹0 cr | -100.00% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹-1 cr | ₹-1 cr | +27.14% |
| Tax | ₹0 cr | ₹-0 cr | — |
| Net profit | ₹-1 cr | ₹-1 cr | +21.54% |
| EPS (₹) | ₹-0.85 | ₹-1.09 | +22.02% |
Operating margin of -8.07% compares with a Fast Moving Consumer Goods sector median of 12.30% across 22 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.51% | +2.46% |
Volume on the results session was 0.01× its 20-day average.
What to watch
- Whether operating margin improves from -8.07% after two consecutive quarters below zero.
- Whether depreciation remains at Rs 0.59 cr or changes the gap between operating profit and pre-tax profit.
- Whether expenses stay below Rs 2.30 cr as revenue moves from Rs 2.13 cr.