Revenue rose 44.69%, but operating margin slipped to 13.76%
Expenses grew 45.96%, outpacing revenue and trimming margin 0.73 percentage points; a lower tax rate supported profit growth.
Filed 03 Nov 2026, 19:00 IST · after market close · Arvee Laboratories (India) Ltd (ARVEE)
Key takeaways
- Standalone revenue grew 44.69% QoQ, but expenses grew faster at 45.96%, leaving operating margin down 0.73 percentage points.
- Net profit rose 51.48% QoQ as the tax rate fell 2.41 percentage points, while other income contributed 10.18% of pre-tax profit.
- Arvee's 13.76% operating margin was 0.42 percentage points below the 14.18% median for 92 reported Commodities peers.
Price around the results
Q2FY27 growth was led by revenue, not operating leverage
Arvee Laboratories reported standalone revenue growth of 44.69% QoQ to Rs 24.93, while operating profit increased 37.20% to Rs 3.43. The slower operating-profit growth shows that the additional revenue did not convert fully into operating earnings. Net profit rose 51.48% to Rs 2.56, helped by the tax rate falling to 23.57% from 25.98%.
Costs outpaced sales and left margin below the peer median
Expenses grew 45.96%, faster than revenue growth of 44.69%, narrowing operating margin by 0.73 percentage points to 13.76%. Interest expense also increased 66.67% QoQ, while depreciation rose 3.13%. Other income accounted for 10.18% of pre-tax profit, so reported profit was partly supported by non-operating income. The margin was 0.42 percentage points below the 14.18% median among 92 Commodities peers that had reported.
Margin direction and market reaction
Operating margin declined from 14.49% in Q1FY27 to 13.76% in Q2FY27, the latest sequential direction in the available quarterly trend. The results were filed after market close on 03 November 2026 at 19:00 IST, so there is no post-results market reaction to assess.
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 | ₹25 cr | ₹17 cr | +44.69% |
| Other income | ₹0 cr | ₹0 cr | +88.89% |
| Expenses | ₹22 cr | ₹15 cr | +45.96% |
| Operating profit | ₹3 cr | ₹3 cr | +37.20% |
| Operating margin (%) | 13.76% | 14.49% | — |
| Interest | ₹0 cr | ₹0 cr | +66.67% |
| Depreciation | ₹0 cr | ₹0 cr | +3.13% |
| Profit before tax | ₹3 cr | ₹2 cr | +45.85% |
| Tax | ₹1 cr | ₹1 cr | +33.90% |
| Net profit | ₹3 cr | ₹2 cr | +51.48% |
| EPS (₹) | ₹2.32 | ₹1.54 | +50.65% |
Operating margin of 13.76% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 13.76% after the 0.73-percentage-point QoQ decline.
- Whether expense growth falls below the 44.69% revenue growth rate.
- Whether other income's share of pre-tax profit remains around 10.18%.