Lower costs lift Renuka's margin, but interest keeps it in the red
The consolidated operating margin turned positive sequentially, yet the company remained loss-making as interest costs stayed close to Rs 178.5 cr.
Filed 30 Oct 2026, 16:47 IST · after market close · Shree Renuka Sugars Ltd (RENUKA)
Key takeaways
- Consolidated operating margin improved 5.15 percentage points sequentially to 1.55%, as expenses fell faster than revenue.
- The company still reported a consolidated net loss of Rs 193.9 cr, with interest of Rs 178.5 cr weighing on a Rs 29.6 cr operating profit.
- Operating margin was 10.92 percentage points below the 12.47% median of 29 Fast Moving Consumer Goods peers that had reported.
Price around the results
Operating profit recovered despite lower revenue
Consolidated revenue fell 10.15% sequentially to Rs 1,905 cr, but expenses declined 14.62%, allowing operating profit to move from a loss of Rs 76.3 cr to Rs 29.6 cr. That cost decline lifted operating margin by 5.15 percentage points to 1.55%. The results were filed after market close, so there is no market reaction to assess yet.
Interest remains larger than operating profit
Interest declined only 1.92% sequentially to Rs 178.5 cr, while depreciation rose 0.87% to Rs 69.3 cr. These charges more than offset operating profit and left profit before tax at a loss of Rs 201.9 cr. Other income was only 16.3 cr, equivalent to -8.07% of pre-tax profit, so it did not provide meaningful support to reported earnings.
Loss narrowed, but the margin still trails peers
The consolidated net loss narrowed 22.90% sequentially from Rs 251.5 cr, while EPS improved from Rs -1.18 to Rs -0.91. The tax rate fell 16.43 percentage points to 3.96%; with both periods reporting losses, the smaller tax benefit in the current quarter limited the improvement from pre-tax profit to net profit. At 1.55%, operating margin was 10.92 percentage points below the 12.47% median for 29 reported Fast Moving Consumer Goods peers, placing the company third from the bottom.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,905 cr | ₹2,120 cr | -10.15% |
| Other income | ₹16 cr | ₹11 cr | +46.85% |
| Expenses | ₹1,875 cr | ₹2,197 cr | -14.62% |
| Operating profit | ₹30 cr | ₹-76 cr | — |
| Operating margin (%) | 1.55% | -3.60% | — |
| Interest | ₹179 cr | ₹182 cr | -1.92% |
| Depreciation | ₹69 cr | ₹69 cr | +0.87% |
| Profit before tax | ₹-202 cr | ₹-316 cr | +36.09% |
| Tax | ₹-8 cr | ₹-64 cr | +87.58% |
| Net profit | ₹-194 cr | ₹-252 cr | +22.90% |
| EPS (₹) | ₹-0.91 | ₹-1.18 | +22.88% |
Operating margin of 1.55% compares with a Fast Moving Consumer Goods sector median of 12.47% across 29 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 1.55% after turning positive from -3.60%.
- Whether revenue recovers from Rs 1,905 cr after the 10.15% sequential decline.
- Whether interest falls below Rs 178.5 cr while operating profit remains positive.