Sundrop revenue grows 8.18% QoQ, but margin slips to 5.18%
Costs grew faster than sales, while higher interest offset some benefit from the lower tax rate and left net profit down 8.90% sequentially.
Filed 05 Nov 2026, 19:31 IST · after market close · Sundrop Brands Ltd (SUNDROP)
Key takeaways
- Consolidated revenue rose +8.18% QoQ, but expenses grew +8.94%, narrowing operating margin by 0.66 percentage points to 5.18%.
- Net profit fell -8.90% QoQ to Rs 11.05 cr even as the tax rate declined 1.82 percentage points to 27.45%.
- Sundrop's 5.18% operating margin was 5.51 percentage points below the 10.69% median for 62 reported FMCG peers.
Price around the results
Revenue growth did not convert into operating profit
In consolidated results, revenue increased +8.18% QoQ to Rs 463.09 cr, but operating profit fell -4.12% to Rs 23.99 cr. Expenses rose +8.94%, outpacing sales growth and pushing operating margin down from 5.84% in Q1FY27 to 5.18%.
Higher interest added to the pressure on profit
Interest expense increased +18.18% QoQ, while depreciation rose +6.12%, adding to the squeeze below operating profit. The tax rate fell from 29.27% to 27.45%, which cushioned net profit, but other income contributed only 4.79% of pre-tax profit and did not materially change earnings quality.
Margin trails the FMCG peer group
Sundrop's 5.18% operating margin was 5.51 percentage points below the 10.69% median among 62 FMCG peers that had reported the quarter, placing it 15 companies from the bottom. The sequential margin decline is the key direction visible from Q1FY27 to Q2FY27. The consolidated results were filed after market close on 5 Nov 2026, so there is no post-results market move to assess yet.
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 | ₹463 cr | ₹428 cr | +8.18% |
| Other income | ₹1 cr | ₹1 cr | -27.72% |
| Expenses | ₹439 cr | ₹403 cr | +8.94% |
| Operating profit | ₹24 cr | ₹25 cr | -4.12% |
| Operating margin (%) | 5.18% | 5.84% | — |
| Interest | ₹1 cr | ₹1 cr | +18.18% |
| Depreciation | ₹9 cr | ₹8 cr | +6.12% |
| Profit before tax | ₹15 cr | ₹17 cr | -11.20% |
| Tax | ₹4 cr | ₹5 cr | -16.73% |
| Net profit | ₹11 cr | ₹12 cr | -8.90% |
| EPS (₹) | ₹2.94 | ₹3.22 | -8.70% |
Operating margin of 5.18% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 5.18% next quarter.
- Whether expense growth falls below the +8.94% QoQ rate recorded this quarter.
- Whether interest expense moderates after rising +18.18% QoQ.