Aro Granite's loss widens as operating margin slips to -18.71%
Standalone revenue fell faster than expenses sequentially, while higher interest costs pushed the net loss deeper despite a tax benefit.
Filed 12 Nov 2026, 13:35 IST · Aro Granite Industries Ltd (AROGRANITE)
Key takeaways
- Standalone net loss deepened to Rs 8.02 cr from Rs 7.45 cr in Q1FY27 as interest costs rose +17.81%.
- Operating margin narrowed by 5.78 percentage points to -18.71% because revenue fell -13.82% while expenses declined only -9.45%.
- Aro Granite's operating margin was 29.94 percentage points below the 11.23% median for 329 reported Consumer Discretionary peers.
Price around the results
Revenue fell faster than the cost base
Aro Granite reported a standalone net loss of Rs 8.02 cr in Q2FY27, deeper than the Rs 7.45 cr loss in Q1FY27. Revenue declined -13.82% sequentially to Rs 17.77 cr, while expenses fell only -9.45% to Rs 21.09 cr. That mismatch pushed operating margin down 5.78 percentage points to -18.71%.
Interest added to the pressure on earnings
Interest expense rose +17.81% sequentially to Rs 3.44 cr even as depreciation declined -5.67% to Rs 2.33 cr. The higher interest bill helped widen the pre-tax loss to Rs 8.70 cr. A tax benefit of Rs 0.68 cr reduced the reported net loss, while other income was only -4.60% of pre-tax profit because pre-tax earnings were negative.
Margin sits well below reported sector peers
The company's -18.71% operating margin was 29.94 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. Aro Granite ranked 18th from the bottom on this measure. The sequential deterioration also marks a second consecutive quarter of negative operating margin, down from -12.93% in Q1FY27.
Shares fell on the filing date
The stock declined -1.75% on the results date and underperformed the market by -1.93%. The move came on 0.10x average volume, so the immediate price response was accompanied by light trading activity.
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 | ₹18 cr | ₹21 cr | -13.82% |
| Other income | ₹0 cr | ₹1 cr | -31.03% |
| Expenses | ₹21 cr | ₹23 cr | -9.45% |
| Operating profit | ₹-3 cr | ₹-3 cr | -24.34% |
| Operating margin (%) | -18.71% | -12.93% | — |
| Interest | ₹3 cr | ₹3 cr | +17.81% |
| Depreciation | ₹2 cr | ₹2 cr | -5.67% |
| Profit before tax | ₹-9 cr | ₹-7 cr | -16.47% |
| Tax | ₹-1 cr | ₹-0 cr | -3300.00% |
| Net profit | ₹-8 cr | ₹-7 cr | -7.65% |
| EPS (₹) | ₹-5.31 | ₹-4.83 | -9.94% |
Operating margin of -18.71% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.75% | -1.93% |
Volume on the results session was 0.10× its 20-day average.
What to watch
- Whether operating margin improves from -18.71%.
- Whether revenue exceeds the Q1FY27 level of Rs 20.62 cr.
- Whether interest expense falls from Rs 3.44 cr.