Consumer Discretionary · Q2FY27 · Consolidated

Asian Granito's margin slips as costs outpace flat revenue

Consolidated net profit fell -35.44% QoQ, while other income made up 40.48% of pre-tax profit.

By Ashutosh

Filed 03 Nov 2026, 17:30 IST · after market close · Asian Granito India Ltd (ASIANTILES)

Key takeaways

  • Consolidated operating margin fell 0.94 percentage points QoQ to 5.25% as expenses grew +0.54% while revenue declined -0.46%.
  • Consolidated net profit declined -35.44% QoQ to Rs 5.21 cr despite the tax rate falling 1.86 percentage points to 15.86%.
  • Other income accounted for 40.48% of pre-tax profit, making the Rs 5.21 cr consolidated profit partly dependent on non-operating income.

Price around the results

Costs rose while revenue was broadly flat

Consolidated revenue declined -0.46% QoQ to Rs 528.5 cr, while expenses increased +0.54% to Rs 500.76 cr. Costs therefore grew faster than revenue, reducing operating margin by 0.94 percentage points to 5.25%. Operating profit fell -15.60% QoQ to Rs 27.75 cr.

Lower tax did not prevent a profit decline

Net profit fell -35.44% QoQ to Rs 5.21 cr even as the tax rate dropped 1.86 percentage points to 15.86%. Interest expense declined -6.91% to Rs 7.95 cr, but other income rose +74.31% to Rs 2.51 cr and represented 40.48% of pre-tax profit. This makes the quarter's reported profit more reliant on non-operating income.

Margin remains below the consumer discretionary peer median

Asian Granito's 5.25% operating margin was 6.98 percentage points below the 12.23% median among 188 Consumer Discretionary peers that had reported the quarter. The margin also declined from 6.19% in Q1FY27, extending the sequential deterioration into Q2. The consolidated results were filed after market close, so there is no market reaction to assess yet.

Q2FY27 at a glance

Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.

Line itemQ2FY27Q1FY27QoQ
Revenue₹529 cr₹531 cr-0.46%
Other income₹3 cr₹1 cr+74.31%
Expenses₹501 cr₹498 cr+0.54%
Operating profit₹28 cr₹33 cr-15.60%
Operating margin (%)5.25%6.19%—
Interest₹8 cr₹9 cr-6.91%
Depreciation₹16 cr₹16 cr+0.88%
Profit before tax₹6 cr₹10 cr-36.80%
Tax₹1 cr₹2 cr-43.68%
Net profit₹5 cr₹8 cr-35.44%
EPS (₹)₹0.20₹0.27-25.93%

Operating margin of 5.25% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.

What to watch

  • Whether operating margin holds above 5.25% after the sequential decline from 6.19%.
  • Whether revenue moves above Rs 528.5 cr while expenses remain below the current Rs 500.76 cr level.
  • Whether other income's 40.48% share of pre-tax profit reduces in the next quarter.