Sakthi Sugars’ margin rebounds as expenses fall faster than revenue
Standalone operating margin rose 11.72 percentage points sequentially, while lower interest and tax rates helped turn Q1’s loss into Q2 profit.
Filed 11 Nov 2026, 13:03 IST · Sakthi Sugars Ltd (SAKHTISUG)
Key takeaways
- Standalone net profit swung to Rs 31.25 cr from a Rs 1.83 cr loss in Q1FY27.
- Operating margin rose 11.72 percentage points QoQ as expenses fell 15.72% while revenue declined 3.56%.
- Sakthi Sugars' 18.81% operating margin was 8.12 percentage points above the 10.69% median for 68 reported FMCG peers.
Price around the results
Profit returned despite lower quarterly revenue
Standalone revenue declined 3.56% QoQ to Rs 363.51 cr, but operating profit rose 155.97% to Rs 68.37 cr. The improvement moved profit before tax from a Rs 2.41 cr loss in Q1FY27 to Rs 38.29 cr, and net profit moved from a Rs 1.83 cr loss to Rs 31.25 cr.
Expense reduction drove the margin rebound
Expenses fell 15.72% QoQ, much faster than revenue, lifting operating margin by 11.72 percentage points to 18.81%. Interest expense declined 5.22% to Rs 22.89 cr, while depreciation increased 1.17% to Rs 9.54 cr. Other income contributed 6.11% of pre-tax profit, so it was not the main source of the quarter's profit.
Margin stood above the FMCG peer median
Sakthi Sugars' 18.81% operating margin was 8.12 percentage points above the 10.69% median among 68 FMCG peers that had reported the quarter. The quarter marks a sharp rebound from the 7.09% margin recorded in Q1FY27, although only one prior quarter is shown for the trend.
Tax rate also supported the profit swing
The tax rate fell 5.72 percentage points QoQ to 18.37%, adding to the benefit from the operating recovery. EPS consequently moved from negative Rs 0.15 in Q1FY27 to Rs 2.63 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 | ₹364 cr | ₹377 cr | -3.56% |
| Other income | ₹2 cr | ₹4 cr | -47.65% |
| Expenses | ₹295 cr | ₹350 cr | -15.72% |
| Operating profit | ₹68 cr | ₹27 cr | +155.97% |
| Operating margin (%) | 18.81% | 7.09% | — |
| Interest | ₹23 cr | ₹24 cr | -5.22% |
| Depreciation | ₹10 cr | ₹9 cr | +1.17% |
| Profit before tax | ₹38 cr | ₹-2 cr | — |
| Tax | ₹7 cr | ₹-1 cr | — |
| Net profit | ₹31 cr | ₹-2 cr | — |
| EPS (₹) | ₹2.63 | ₹-0.15 | — |
Operating margin of 18.81% compares with a Fast Moving Consumer Goods sector median of 10.69% across 68 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 18.81% after the 11.72 percentage-point QoQ increase.
- Whether expenses remain below the Q1FY27 level of Rs 350.20 cr.
- Whether the tax rate stays below the Q1FY27 level of 24.09%.