Airo Lam lifts Q2 margin as costs trail revenue growth
Lower interest and tax costs amplified profit, but operating margin remained below the sector median.
Filed 07 Nov 2026, 18:08 IST · after market close · Airo Lam Ltd (AIROLAM)
Key takeaways
- Airo Lam's consolidated operating margin widened 1.23 percentage points QoQ to 8.38% as revenue growth of +23.68% outpaced expense growth of +22.06%.
- Consolidated net profit rose +199.22% QoQ to Rs 3.83 cr, helped by a -25.93% fall in interest and a 14.63 percentage-point drop in the tax rate.
- At 8.38%, Airo Lam's operating margin was 3.01 percentage points below the 11.39% median for 290 Consumer Discretionary peers reporting the quarter.
Price around the results
Revenue growth outpaced cost growth in Q2FY27
Airo Lam's consolidated revenue grew +23.68% QoQ, while expenses increased +22.06%, allowing operating profit to rise +45.01%. That cost gap widened operating margin by 1.23 percentage points to 8.38%. The improvement is sequential from Q1FY27, when operating margin was 7.15%.
Lower interest and tax amplified the profit increase
Interest expense fell -25.93% QoQ, while depreciation was unchanged, supporting the rise in profit before tax of +149.15%. The tax rate fell from 27.86% to 13.23%, which further lifted net profit growth to +199.22%. Other income contributed 4.76% of pre-tax profit, so it was not the main source of the earnings increase.
Margin remains below the Consumer Discretionary peer median
Airo Lam's 8.38% operating margin was 3.01 percentage points below the 11.39% median among 290 Consumer Discretionary peers that had reported the same quarter. The results were filed after market close on 07 Nov 2026, so there is no market reaction to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹82 cr | ₹66 cr | +23.68% |
| Other income | ₹0 cr | ₹0 cr | +23.53% |
| Expenses | ₹75 cr | ₹61 cr | +22.06% |
| Operating profit | ₹7 cr | ₹5 cr | +45.01% |
| Operating margin (%) | 8.38% | 7.15% | — |
| Interest | ₹1 cr | ₹2 cr | -25.93% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹4 cr | ₹2 cr | +149.15% |
| Tax | ₹1 cr | ₹0 cr | +18.37% |
| Net profit | ₹4 cr | ₹1 cr | +199.22% |
| EPS (₹) | ₹2.55 | ₹0.85 | +200.00% |
Operating margin of 8.38% compares with a Consumer Discretionary sector median of 11.39% across 290 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 8.38% after the 1.23 percentage-point QoQ improvement.
- Whether interest expense remains below Rs 1.40 cr after falling -25.93% QoQ.
- Whether the tax rate stays near 13.23% rather than returning toward Q1FY27's 27.86%.