Ponni Sugars swings to profit as margin jumps 22.93 percentage points
Standalone revenue grew 73.68% sequentially while expenses rose 34.62%, but the tax rate increased to 33.30% and limited the profit conversion.
Filed 23 Oct 2026, 14:18 IST · Ponni Sugars (Erode) Ltd (PONNIERODE)
Key takeaways
- Standalone net profit recovered to Rs 21.69 cr in Q2FY27 from a Rs 1.23 cr loss in Q1FY27.
- Revenue grew +73.68% QoQ while expenses rose +34.62%, lifting operating margin by 22.93 percentage points to 20.99%.
- The tax rate increased 13.69 percentage points to 33.3%, while other income accounted for 6.18% of pre-tax profit.
Price around the results
A sharp sequential recovery in Q2FY27
Ponni Sugars reported standalone revenue growth of +73.68% QoQ, while expenses increased +34.62%; the wider revenue increase moved operating profit from a loss of Rs 1.78 cr to Rs 33.49 cr. Net profit consequently recovered from a Rs 1.23 cr loss to Rs 21.69 cr. This is a sequential comparison because no year-on-year comparison is provided.
Margin expansion was operational, but tax rose
Operating margin expanded by 22.93 percentage points to 20.99% because expenses grew more slowly than revenue. The tax rate rose by 13.69 percentage points to 33.3%, which reduced the conversion of pre-tax profit into net profit. Other income contributed 6.18% of pre-tax profit, so it was not the main source of the quarter's earnings.
Margin was above the reported FMCG peer median
Ponni Sugars' operating margin was 4.81 percentage points above the 16.18% median for the 9 Fast Moving Consumer Goods peers that had reported the same quarter. The available quarter-on-quarter direction was a reversal from Q1FY27's negative 1.94% operating margin to 20.99% in Q2FY27.
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 | ₹160 cr | ₹92 cr | +73.68% |
| Other income | ₹2 cr | ₹3 cr | -35.78% |
| Expenses | ₹126 cr | ₹94 cr | +34.62% |
| Operating profit | ₹33 cr | ₹-2 cr | — |
| Operating margin (%) | 20.99% | -1.94% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹3 cr | ₹3 cr | +2.78% |
| Profit before tax | ₹33 cr | ₹-2 cr | — |
| Tax | ₹11 cr | ₹-0 cr | — |
| Net profit | ₹22 cr | ₹-1 cr | — |
| EPS (₹) | ₹25.22 | ₹-1.43 | — |
Operating margin of 20.99% compares with a Fast Moving Consumer Goods sector median of 16.18% across 9 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.41% | -2.09% |
Volume on the results session was 0.56× its 20-day average.
What to watch
- Whether standalone operating margin holds above 20.99%.
- Whether revenue growth remains ahead of expense growth after +73.68% and +34.62% QoQ, respectively.
- Whether the tax rate stays around 33.3% and other income remains near 6.18% of pre-tax profit.