Akshar Spintex revenue rises, but faster costs halve quarterly profit
Standalone revenue grew 19.24% sequentially, but operating margin fell to 5.42% as expenses rose 21.70% and other income exceeded pre-tax profit.
Filed 27 Oct 2026, 14:54 IST · Akshar Spintex Ltd (AKSHAR)
Key takeaways
- Standalone revenue rose 19.24% QoQ to Rs 35.69 cr, but expenses grew faster at 21.70%.
- Operating margin narrowed 1.89 percentage points to 5.42%, while net profit fell 50.00% QoQ.
- Other income equalled 114.29% of standalone pre-tax profit, making reported earnings quality a key focus.
Price around the results
Revenue growth did not translate into profit growth
Akshar Spintex reported standalone revenue growth of 19.24% QoQ to Rs 35.69 cr, but operating profit declined 11.87% to Rs 1.93 cr. Pre-tax profit fell 46.15% and net profit dropped 50.00% to Rs 0.30 cr, despite interest remaining unchanged at Rs 0.07 cr.
Costs and depreciation squeezed the quarter
Expenses grew 21.70% QoQ, faster than revenue, which narrowed operating margin by 1.89 percentage points to 5.42%. Depreciation rose 17.58% to Rs 1.94 cr, adding pressure below the operating-profit line. The tax rate also increased 3.37 percentage points to 45.94%.
Margin trails the Consumer Discretionary peer median
Akshar Spintex's 5.42% operating margin was 6.80 percentage points below the 12.22% median among 65 Consumer Discretionary companies that had reported the same quarter. It ranked 13th from the bottom on this measure. Sequentially, margin declined from 7.31% in Q1FY27, while the available trend does not establish a longer multi-quarter direction.
Other income made up more than pre-tax profit
Other income rose 12.28% QoQ to Rs 0.64 cr and represented 114.29% of pre-tax profit. That means the quarter's Rs 0.30 cr standalone net profit was supported by income outside operations, even as operating profit declined.
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 | ₹36 cr | ₹30 cr | +19.24% |
| Other income | ₹1 cr | ₹1 cr | +12.28% |
| Expenses | ₹34 cr | ₹28 cr | +21.70% |
| Operating profit | ₹2 cr | ₹2 cr | -11.87% |
| Operating margin (%) | 5.42% | 7.31% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹2 cr | ₹2 cr | +17.58% |
| Profit before tax | ₹1 cr | ₹1 cr | -46.15% |
| Tax | ₹0 cr | ₹0 cr | -40.91% |
| Net profit | ₹0 cr | ₹1 cr | -50.00% |
| EPS (₹) | ₹0.00 | ₹0.01 | -100.00% |
Operating margin of 5.42% compares with a Consumer Discretionary sector median of 12.22% across 65 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.00% | +0.22% |
Volume on the results session was 1.24× its 20-day average.
What to watch
- Whether operating margin recovers from 5.42% after falling from 7.31% in Q1FY27.
- Whether expense growth slows from 21.70% to below revenue growth of 19.24%.
- Whether other income remains above 114.29% of pre-tax profit.