Costs outpaced sales, cutting Tasty Bite's margin by 2.02 points
Standalone revenue rose +13.21% QoQ, but other income supplied 64.91% of pre-tax profit as operating profit fell -10.89%.
Filed 05 Nov 2026, 18:43 IST · after market close · Tasty Bite Eatables Ltd (TASTYBITE)
Key takeaways
- Standalone revenue rose +13.21% QoQ, but expenses grew +15.73%, narrowing operating margin by 2.02 percentage points.
- Other income contributed 64.91% of pre-tax profit, making the +1.58% QoQ rise in net profit less reflective of operations.
- Operating margin at 7.47% was 3.22 percentage points below the 10.69% median of 56 reported FMCG peers.
Price around the results
Revenue growth did not convert into operating profit
Tasty Bite's standalone revenue increased +13.21% QoQ to Rs 176.32 cr, while operating profit fell -10.89% to Rs 13.17 cr. Management said the Affiliates Business grew 65% year on year in Q2 and the Third-Party Business grew 14%; it also said Food Service recorded its 12th consecutive quarter of growth. The company said Cheffin expanded from Amazon to Zepto, Blinkit and Swiggy Instamart, and launched four Asian Noodles variants during the quarter.
Higher costs drove the margin squeeze
Expenses grew +15.73%, faster than revenue at +13.21%, reducing the standalone operating margin by 2.02 percentage points to 7.47%. Management cited inflation in raw materials, packaging and logistics from geopolitical uncertainties, and said investments in Cheffin and HoReCa caused EBITDA growth to lag revenue growth in the first half. It said sourcing, cost optimisation and operational-efficiency measures are being used to manage these pressures.
Profit quality was supported by other income
Other income rose +33.67% QoQ to Rs 7.86 cr and accounted for 64.91% of pre-tax profit, while the tax rate was broadly unchanged at 25.86%. That helped net profit rise +1.58% QoQ to Rs 8.98 cr even as operating profit declined. The company's 7.47% operating margin was below the 10.69% median for 56 FMCG peers that had reported the quarter, placing it 18th from the bottom.
Management is balancing brand investment with discipline
Management said it remains focused on innovation, deeper customer relationships, India-led businesses and consumer and food-service brands. It also said it plans to continue investing in Cheffin through brand building, product innovation, distribution and digital capabilities, while balancing growth with operational efficiency and financial discipline. The standalone results were filed after market close on 5 November 2026.
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 | ₹176 cr | ₹156 cr | +13.21% |
| Other income | ₹8 cr | ₹6 cr | +33.67% |
| Expenses | ₹163 cr | ₹141 cr | +15.73% |
| Operating profit | ₹13 cr | ₹15 cr | -10.89% |
| Operating margin (%) | 7.47% | 9.49% | — |
| Interest | ₹1 cr | ₹1 cr | -3.09% |
| Depreciation | ₹8 cr | ₹8 cr | +2.57% |
| Profit before tax | ₹12 cr | ₹12 cr | +1.68% |
| Tax | ₹3 cr | ₹3 cr | +1.62% |
| Net profit | ₹9 cr | ₹9 cr | +1.58% |
| EPS (₹) | ₹34.98 | ₹34.45 | +1.54% |
Operating margin of 7.47% compares with a Fast Moving Consumer Goods sector median of 10.69% across 56 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The Affiliates Business grew 65% year on year in Q2.
- The Third-Party Business grew 14% year on year in Q2, while Food Service achieved its 12th consecutive quarter of growth.
Guidance & outlook
- The company plans to accelerate innovation, deepen customer relationships, expand India-led businesses and strengthen consumer and food-service brands.
- The company remains committed to balancing growth with operational efficiency and financial discipline despite near-term pressures.
Expansion
- Cheffin expanded from Amazon into Zepto, Blinkit and Swiggy Instamart across e-commerce and quick-commerce platforms.
New products
- Cheffin launched four Asian Noodles variants during Q2.
New initiatives
- The company is using sourcing initiatives, cost optimization, operational efficiencies and value leadership initiatives to manage external cost pressures.
- The company is investing in Cheffin through brand building, product innovation, market development, distribution expansion and digital capabilities.
Problems & risks
- Geopolitical uncertainties, including the Middle East crisis, created external cost pressures and inflation in raw materials, packaging and logistics.
- Investments in Cheffin and HoReCa contributed to EBITDA growth lagging revenue growth during the first half.
- The company said geopolitical uncertainties, inflationary pressures and investments in emerging businesses may continue to affect near-term profitability.
What to watch
- Whether operating margin recovers from 7.47% after the 2.02-percentage-point QoQ decline.
- Whether expenses grow slower than revenue after rising +15.73% against revenue growth of +13.21%.
- Whether other income remains a large contributor after accounting for 64.91% of pre-tax profit.