Arkade's margin expands 4.96 points despite softer revenue
Consolidated expenses fell faster than revenue, lifting operating profit 24.17% quarter on quarter and net profit 30.03%.
Filed 28 Oct 2026, 17:17 IST · after market close · Arkade Developers Ltd (ARKADE)
Key takeaways
- Consolidated net profit rose 30.03% quarter on quarter even as revenue declined 1.58%.
- Operating margin expanded 4.96 percentage points to 23.87% as expenses fell 7.59%, faster than revenue.
- Other income contributed 6.7% of pre-tax profit, while the tax rate fell 1.47 percentage points to 25.45%.
Price around the results
Profit growth outpaced a small revenue decline
Arkade Developers reported consolidated revenue growth of -1.58% quarter on quarter, but operating profit increased 24.17% and net profit rose 30.03%. The profit acceleration came from a sharper 7.59% decline in expenses than in revenue. This made Q2FY27 a margin-led improvement rather than a sales-led one.
Lower costs drove the 4.96-point margin expansion
Operating margin widened by 4.96 percentage points because expenses fell faster than revenue. Interest costs declined 9.09%, although depreciation increased 3.14%. The lower tax rate, down 1.47 percentage points, also supported net profit; other income accounted for 6.7% of pre-tax profit, so earnings were not entirely operating-led.
Margin stayed above the consumer discretionary peer median
Arkade's 23.87% operating margin was 10.85 percentage points above the 13.02% median for the 84 Consumer Discretionary peers that had reported the quarter. The margin also improved from 18.91% in Q1FY27, reversing the weaker sequential profitability seen in that quarter. The results were filed after market close on 28 October 2026, so no post-results market reaction is available to assess.
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 | ₹145 cr | ₹147 cr | -1.58% |
| Other income | ₹2 cr | ₹2 cr | +31.18% |
| Expenses | ₹110 cr | ₹119 cr | -7.59% |
| Operating profit | ₹35 cr | ₹28 cr | +24.17% |
| Operating margin (%) | 23.87% | 18.91% | — |
| Interest | ₹0 cr | ₹0 cr | -9.09% |
| Depreciation | ₹3 cr | ₹3 cr | +3.14% |
| Profit before tax | ₹33 cr | ₹26 cr | +27.42% |
| Tax | ₹8 cr | ₹7 cr | +20.48% |
| Net profit | ₹25 cr | ₹19 cr | +30.03% |
| EPS (₹) | ₹1.35 | ₹1.03 | +31.07% |
Operating margin of 23.87% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 23.87%.
- Whether expenses continue to grow slower than revenue after declining 7.59% versus revenue's 1.58% decline.
- Whether other income remains close to 6.7% of pre-tax profit and the tax rate near 25.45%.