Archidply's margin slips as costs outpace revenue growth
Operating profit fell -19.76% QoQ, while higher other income lifted pre-tax profit and net profit.
Filed 03 Nov 2026, 14:38 IST · Archidply Industries Ltd (ARCHIDPLY)
Key takeaways
- Consolidated operating margin narrowed by 1.72 percentage points QoQ to 5.65% as expenses grew +6.52%, ahead of revenue growth of +4.59%.
- Net profit rose +10.32% QoQ to Rs 6.20 cr, but other income supplied 56.08% of pre-tax profit.
- Archidply's 5.65% operating margin was 6.58 percentage points below the 12.23% median for 188 Consumer Discretionary peers.
Price around the results
Costs outpaced revenue in Q2FY27
Consolidated revenue rose +4.59% QoQ to Rs 197.69 cr, but expenses grew faster at +6.52% to Rs 186.51 cr. That mismatch cut operating profit by -19.76% to Rs 11.17 cr and narrowed operating margin by 1.72 percentage points to 5.65%.
Other income carried the profit bridge
Net profit rose +10.32% QoQ even as operating profit declined, helped by other income rising +1217.14% to Rs 4.61 cr. Other income accounted for 56.08% of pre-tax profit, while the tax rate increased by 1.68 percentage points and interest fell -5.36%. Depreciation also rose +25.82%, limiting the benefit below operating profit.
Margin remains below the sector benchmark
Archidply's 5.65% operating margin was 6.58 percentage points below the 12.23% median among 188 Consumer Discretionary peers that had reported the quarter. The sequential direction was negative, with margin down from 7.37% in Q1FY27.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹198 cr | ₹189 cr | +4.59% |
| Other income | ₹5 cr | ₹0 cr | +1217.14% |
| Expenses | ₹187 cr | ₹175 cr | +6.52% |
| Operating profit | ₹11 cr | ₹14 cr | -19.76% |
| Operating margin (%) | 5.65% | 7.37% | — |
| Interest | ₹4 cr | ₹4 cr | -5.36% |
| Depreciation | ₹4 cr | ₹3 cr | +25.82% |
| Profit before tax | ₹8 cr | ₹7 cr | +12.76% |
| Tax | ₹2 cr | ₹2 cr | +20.96% |
| Net profit | ₹6 cr | ₹6 cr | +10.32% |
| EPS (₹) | ₹3.12 | ₹2.83 | +10.25% |
Operating margin of 5.65% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 5.65% after the 1.72-percentage-point QoQ decline.
- Whether expense growth remains above revenue growth after +6.52% versus +4.59% in Q2FY27.
- Whether other income's 56.08% share of pre-tax profit changes next quarter.