Aditya Vision's Q2 margin slips as costs outpace revenue
Standalone net profit fell 76.69% QoQ, while operating margin trailed the 112-peer sector median by 4.74 percentage points.
Filed 30 Oct 2026, 15:15 IST · Aditya Vision Ltd (AVL)
Key takeaways
- Standalone net profit fell 76.69% QoQ as revenue declined 50.87%.
- Operating margin narrowed 2.76 percentage points because expenses fell less than revenue.
- Aditya Vision's 7.68% operating margin was 4.74 percentage points below the 12.42% median for 112 Consumer Discretionary peers.
Price around the results
Q2 profit fell sharply on weaker sequential revenue
Aditya Vision reported standalone results, with revenue down 50.87% QoQ and operating profit down 63.85%. Net profit declined 76.69%, a steeper fall than revenue because expenses decreased only 49.35%.
Cost absorption pushed operating margin lower
Expenses fell less than revenue sequentially, so operating margin narrowed 2.76 percentage points. Lower interest expense, down 12.43%, did not offset depreciation rising 4.84% and the weaker operating profit. Other income contributed 8.33% of profit before tax, so a portion of reported pre-tax profit came from non-operating income; the tax rate changed only 0.1 percentage points.
Margin trails peers as store expansion continues
Aditya Vision's 7.68% operating margin was 4.74 percentage points below the 12.42% median among 112 Consumer Discretionary peers that had reported. The company said it had entered Chhattisgarh, Madhya Pradesh and West Bengal within six months, taking its footprint to 214 stores across four states. Management said new stores create a short-term operating expense impact and take about three years to mature, while its Hindi Heartland playbook aims to cover 45% of India's population.
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 | ₹586 cr | ₹1,193 cr | -50.87% |
| Other income | ₹2 cr | ₹2 cr | -7.41% |
| Expenses | ₹541 cr | ₹1,068 cr | -49.35% |
| Operating profit | ₹45 cr | ₹124 cr | -63.85% |
| Operating margin (%) | 7.68% | 10.44% | — |
| Interest | ₹10 cr | ₹11 cr | -12.43% |
| Depreciation | ₹13 cr | ₹12 cr | +4.84% |
| Profit before tax | ₹24 cr | ₹103 cr | -76.66% |
| Tax | ₹6 cr | ₹26 cr | -76.56% |
| Net profit | ₹18 cr | ₹77 cr | -76.69% |
| EPS (₹) | ₹1.00 | ₹5.98 | -83.28% |
Operating margin of 7.68% compares with a Consumer Discretionary sector median of 12.42% across 112 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The Hindi Heartland playbook aims to cover 45% of India's population.
Expansion
- The company entered Chhattisgarh, Madhya Pradesh and West Bengal within six months, ahead of guidance.
- The company had 214 stores across four states and had not closed any store since inception.
Competition
- The company became the largest organized player in Jharkhand in one year.
Problems & risks
- New stores create a short-term operating expense impact and take about three years to mature.
What to watch
- Whether operating margin recovers from 7.68% in the next quarter.
- Whether revenue momentum improves from the 50.87% QoQ decline.
- Whether operating expense pressure eases as the 214-store network expands.