Q2 operating margin rises as revenue growth outpaces costs
Standalone net profit rose +60.77% QoQ, though other income made up 43.64% of pre-tax profit.
Filed 31 Oct 2026, 15:15 IST · after market close · Aditya Birla Lifestyle Brands Ltd (ABLBL)
Key takeaways
- Standalone revenue rose +11.27% QoQ to Rs 2,279.70 cr, while expenses grew +10.60%, lifting operating margin by 0.51 percentage points.
- Standalone net profit increased +60.77% QoQ to Rs 50.16 cr, but other income accounted for 43.64% of pre-tax profit.
- Operating margin improved to 15.51%, 2.42 percentage points above the 13.09% median for 131 Consumer Discretionary peers.
Price around the results
Revenue momentum lifts standalone operating profit
Standalone revenue grew +11.27% QoQ, ahead of the +10.60% increase in expenses, which lifted operating profit by +15.02% and expanded operating margin by 0.51 percentage points. The margin reached 15.51%, above the 13.09% median reported by 131 Consumer Discretionary peers. This was the third consecutive quarterly improvement, from 14.44% in Q4FY26 to 15.00% in Q1FY27 and 15.51% in Q2FY27.
Other income remains material to pre-tax profit
Profit before tax rose +60.75% QoQ despite interest increasing +15.95% and depreciation rising +9.65%. Other income grew +66.06% and contributed 43.64% of pre-tax profit, making the profit increase less representative of operating earnings alone. The tax rate fell by only 0.01 percentage points to 25.31%, so a lower tax rate was not a material driver of the net-profit increase.
Management points to digital and small-town initiatives
Management said the company's own e-commerce business grew +70% in Q2, helped by hyperlocal capabilities, app performance and customer service. It also said the small-town network delivered a sixth consecutive quarter of double-digit like-to-like growth. The company told analysts it is using targeted digital marketing and offerings such as Vybe by Peter England to acquire consumers, while its presentation flags rising input prices and operating expenses as sources of cost inflation.
Results were filed after market close
Aditya Birla Lifestyle Brands filed these standalone Q2FY27 results after market close on 31 October 2026. The next market session will provide the initial trading response.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,280 cr | ₹2,049 cr | +11.27% |
| Other income | ₹29 cr | ₹18 cr | +66.06% |
| Expenses | ₹1,926 cr | ₹1,741 cr | +10.60% |
| Operating profit | ₹354 cr | ₹307 cr | +15.02% |
| Operating margin (%) | 15.51% | 15.00% | — |
| Interest | ₹94 cr | ₹81 cr | +15.95% |
| Depreciation | ₹222 cr | ₹202 cr | +9.65% |
| Profit before tax | ₹67 cr | ₹42 cr | +60.75% |
| Tax | ₹17 cr | ₹11 cr | +60.68% |
| Net profit | ₹50 cr | ₹31 cr | +60.77% |
| EPS (₹) | ₹0.41 | ₹0.26 | +57.69% |
Operating margin of 15.51% compares with a Consumer Discretionary sector median of 13.09% across 131 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 small-town network continued to outperform, with a sixth consecutive quarter of double-digit like-to-like growth.
- The company's own e-commerce business grew 70% in Q2.
New initiatives
- The company is engaging Gen Z consumers through new offerings such as Vybe by Peter England.
- Targeted digital marketing initiatives are being used to drive consumer acquisition.
- The company improved its own e-commerce business through enhanced hyperlocal capabilities, app performance and customer service.
Problems & risks
- Rising input prices and operating expenses are driving cost inflation.
What to watch
- Whether standalone operating margin holds above 15.51% amid the cost inflation flagged by management.
- Whether other income's contribution to pre-tax profit moves below 43.64%.
- Whether the own e-commerce business sustains the +70% Q2 growth cited by management.