Pudumjee Paper margin shrinks as costs outpace 12% revenue growth
Net profit fell 32.62% QoQ, with lower other income and a higher tax rate adding to the operating squeeze.
Filed 30 Oct 2026, 16:25 IST · after market close · Pudumjee Paper Products Ltd (PDMJEPAPER)
Key takeaways
- Revenue grew 12.01% qoq, but expenses grew 17.25%, cutting operating margin by 3.85 percentage points to 13.68%.
- Net profit fell 32.62% qoq as other income declined 52.21% and the tax rate rose 4.54 percentage points.
- Pudumjee Paper's 13.68% operating margin was 1.65 percentage points below the 15.33% median for 54 reported commodity-sector peers.
Price around the results
Q2 loses operating leverage
These are standalone results. Revenue rose 12.01% qoq to Rs 227.3 cr, but expenses rose 17.25%, so operating profit declined 12.59% and operating margin narrowed 3.85 percentage points to 13.68%. The faster rise in costs than revenue was the main operating pressure.
Other income and tax amplified the profit decline
Net profit fell 32.62% qoq, while profit before tax declined 28.31%. Other income fell 52.21% and still accounted for 23.28% of pre-tax profit, making it a material contributor to reported earnings. The tax rate rose 4.54 percentage points to 29.09%, while interest expense fell 4.49% and was not a source of pressure.
Margin trails the reported commodity-sector median
Pudumjee Paper's 13.68% operating margin was 1.65 percentage points below the 15.33% median among 54 commodity-sector peers that had reported the quarter. Sequentially, margin moved down from 17.53% in Q1FY27 to 13.68% in Q2FY27.
After-close filing leaves the market reaction pending
The company filed its standalone results after market close on 30 October 2026. The market response is therefore not part of this results update.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹227 cr | ₹203 cr | +12.01% |
| Other income | ₹7 cr | ₹16 cr | -52.21% |
| Expenses | ₹196 cr | ₹167 cr | +17.25% |
| Operating profit | ₹31 cr | ₹36 cr | -12.59% |
| Operating margin (%) | 13.68% | 17.53% | — |
| Interest | ₹1 cr | ₹2 cr | -4.49% |
| Depreciation | ₹5 cr | ₹5 cr | +1.82% |
| Profit before tax | ₹32 cr | ₹45 cr | -28.31% |
| Tax | ₹9 cr | ₹11 cr | -15.04% |
| Net profit | ₹23 cr | ₹34 cr | -32.62% |
| EPS (₹) | ₹2.39 | ₹3.55 | -32.68% |
Operating margin of 13.68% compares with a Commodities sector median of 15.33% across 54 peers that have reported Q2FY27.
What to watch
- Whether expense growth falls below the 17.25% qoq pace against revenue growth of 12.01%.
- Whether operating margin moves back above 13.68% after the 3.85-percentage-point qoq decline.
- Whether other income remains a 23.28% share of pre-tax profit and the tax rate stays near 29.09%.