Sukhjit Starch lifts margin, but trails FMCG peer median by 8.73 pp
Sequential revenue growth of +103.14% outpaced expense growth of +102.05%, but interest expense rose +112.24%.
Filed 23 Oct 2026, 13:01 IST · Sukhjit Starch & Chemicals Ltd (SUKHJITS)
Key takeaways
- Consolidated revenue more than doubled sequentially, rising +103.14% to Rs 803.73 cr.
- Operating margin improved by 0.50 percentage points to 8.12% as expenses grew slightly slower than revenue.
- Net profit rose +125.68% sequentially, but interest expense increased +112.24% and the tax rate rose 1.37 percentage points.
Price around the results
Revenue more than doubled from Q1FY27
Sukhjit Starch reported consolidated revenue growth of +103.14% sequentially, while operating profit increased +116.42%. The result marks a sharp step-up from Q1FY27, although there is no year-on-year comparison in the reported set.
Small margin gain despite a sharp rise in finance cost
Expenses grew +102.05%, slightly slower than revenue, lifting operating margin by 0.50 percentage points to 8.12%. Interest expense rose +112.24% sequentially and depreciation increased +105.58%, which absorbed part of the operating improvement. Other income accounted for 8.43% of profit before tax, making it a supplementary rather than primary earnings source, while the tax rate increased 1.37 percentage points.
Operating margin remains below the reported FMCG peer median
Sukhjit Starch's 8.12% operating margin was 8.06 percentage points below the 16.18% median for the nine FMCG peers that had reported. It ranked fourth from the bottom on this measure, despite the sequential margin improvement.
Shares rose 5.53% on the results date
The stock gained +5.53% on 23 October, with trading volume at 5.63 times the reference level. The opening gap was -0.14%, while the relative return was +5.91%.
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 | ₹804 cr | ₹396 cr | +103.14% |
| Other income | ₹3 cr | ₹1 cr | +207.00% |
| Expenses | ₹738 cr | ₹366 cr | +102.05% |
| Operating profit | ₹65 cr | ₹30 cr | +116.42% |
| Operating margin (%) | 8.12% | 7.62% | — |
| Interest | ₹14 cr | ₹7 cr | +112.24% |
| Depreciation | ₹18 cr | ₹9 cr | +105.58% |
| Profit before tax | ₹36 cr | ₹16 cr | +129.78% |
| Tax | ₹9 cr | ₹4 cr | +143.24% |
| Net profit | ₹27 cr | ₹12 cr | +125.68% |
| EPS (₹) | ₹8.78 | ₹3.89 | +125.71% |
Operating margin of 8.12% 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 | +5.53% | +5.91% |
Volume on the results session was 5.63× its 20-day average.
What to watch
- Whether operating margin holds above the Q2FY27 level of 8.12%.
- Whether interest expense moderates after rising +112.24% sequentially.
- Whether the tax rate moves back from 24.71% after increasing 1.37 percentage points sequentially.