Synopsis: A handful of small-cap companies delivered a sharp improvement in operating margins during Q1 FY27, reflecting stronger profitability, better cost management and improving business performance despite a mixed market environment.
Operating Profit Margin (OPM) is a key measure of a company’s operational efficiency, showing how much profit it earns from its core business before interest and taxes. A rising OPM often indicates better cost control, improved pricing power or a favorable business mix.
In Q1 FY27, several small-cap companies reported a significant expansion in their operating margins compared to the March quarter, highlighting stronger execution and improved profitability. Here are five small-cap stocks that stood out with notable margin improvement during the quarter.
D.P. Abhushan Ltd
D.P. Abhushan Ltd is a jewellery retail business firm that manufactures gold, diamond and silver jewellery products in India. The firm conducts its business under the brand name “D.P. Jewellers” and enjoys popularity in the states of Madhya Pradesh, Rajasthan, Chhattisgarh and Gujarat.
With the market capitalization of Rs. 3059 Crores, the shares of D.P. Abhushan Ltd were trading at around Rs. 1340 which is 22 percent discount from its 52 week high of Rs. 1730 per share and the margin has increased to 11 percent in Q1 FY27 from 5 percent in Q4 FY26
Krishana Phoschem Ltd
Krishana Phoschem Ltd is a specialized fertilizer company that produces phosphatic fertilizers, dyes, and chemicals. Some of the major products produced by Krishana Phoschem Ltd include SSP, H-Acid, and Sulphuric Acid. These products find application in the agriculture and chemicals industry.
With the market capitalization of Rs. 5010 Crores, the shares of Krishana Phoschem Ltd were trading at around its 52 week high of Rs. 162 per share and the margin has increased to 16.7 percent in Q1 FY27 from 11.8 percent in Q4 FY26
Madhya Bharat Agro Products Ltd
MBAPL produces fertilizers, industrial chemicals, and edible oils. Some products produced by MBAPL include SSP, NPK Fertilizer, Sulphuric Acid, Soy Oil, and De-oiled Cake. The firm caters to the Indian agricultural industry and is growing both in terms of production capacity and product range.
With the market capitalization of Rs. 6,495 Crores, the shares of Madhya Bharat Agro Products Ltd were trading at around its 52 week high of Rs. 149 and the margin has increased to 16 percent in Q1 FY27 from 10 percent in Q4 FY26
Rallis India ltd
Rallis India Ltd, a subsidiary of the Tata group, is one of the major agrochemicals companies in India. The company produces crop protection chemicals, plant growth nutrients, seeds, and special solutions. Rallis operates both domestically and internationally and is very well-known for contract manufacturing, export, and agricultural advisory services to Indian farmers.
With the market capitalization of Rs. 4257 Crores, the shares of Rallis India Ltd were trading at around Rs. 219 per share which is 43 percent discount from its 52 week high of Rs. 386 per share and the margin has increased to 18 percent in Q1 FY27 from negative margin in Q4 FY26
Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Limited is a company that specializes in power generation through both thermal and hydroelectric sources. Besides being involved in power generation activities, the company is also engaged in coal mining operations to provide fuel to its plants.
With the market capitalization of Rs. 11,623 Crores, the shares of Jaiprakash Power Ventures Ltd company trading at around Rs. 17 which is 30 percent discount from its 52 week high of Rs. 24.5 per share and the margin has increased to 43 percent in Q1 FY27 from 9 percent in Q4 FY26
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