Axita Cotton's operating margin jumps 7.21 points QoQ
Revenue grew 16.27% while expenses rose 7.64%, lifting standalone operating profit 302.34% from Q1FY27.
Filed 29 Oct 2026, 19:13 IST · after market close · Axita Cotton Ltd (AXITA)
Key takeaways
- Standalone operating margin rose 7.21 percentage points QoQ to 10.15% as revenue growth outpaced expense growth.
- Standalone net profit increased 54.04% QoQ to Rs 5.53 cr, helped by a 56.86% fall in interest costs.
- Operating margin remained 2.59 percentage points below the 12.74% median for 107 Consumer Discretionary peers.
Price around the results
Revenue growth converted into a sharper operating rebound
Axita Cotton's standalone revenue rose 16.27% QoQ, while operating profit increased 302.34% to Rs 6.88 cr. The improvement reflects revenue growth running ahead of expenses, which rose 7.64%. Net profit still grew at a slower 54.04%, as the previous quarter had higher other income.
Lower interest costs supported profit quality
Operating margin widened by 7.21 percentage points QoQ as costs grew more slowly than revenue. Interest expense fell 56.86%, while the tax rate declined by 0.85 percentage points to 23.34%, giving an additional lift to net profit. Other income contributed 9.85% of pre-tax profit, so it was a limited but visible part of earnings.
Margin remains below the reported peer median
The company's 10.15% operating margin was 2.59 percentage points below the 12.74% median among 107 Consumer Discretionary peers that had reported the same quarter. Axita Cotton ranked 43rd from the bottom on this measure. The results were filed after market close, so a market reaction is not yet part of this report.
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 | ₹68 cr | ₹58 cr | +16.27% |
| Other income | ₹1 cr | ₹4 cr | -80.76% |
| Expenses | ₹61 cr | ₹57 cr | +7.64% |
| Operating profit | ₹7 cr | ₹2 cr | +302.34% |
| Operating margin (%) | 10.15% | 2.94% | — |
| Interest | ₹0 cr | ₹1 cr | -56.86% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹7 cr | ₹5 cr | +52.11% |
| Tax | ₹2 cr | ₹1 cr | +46.09% |
| Net profit | ₹6 cr | ₹4 cr | +54.04% |
| EPS (₹) | ₹0.14 | ₹0.09 | +55.56% |
Operating margin of 10.15% compares with a Consumer Discretionary sector median of 12.74% across 107 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.14% | -0.65% |
Volume on the results session was 1.46× its 20-day average.
What to watch
- Whether standalone operating margin holds above 10.15%.
- Whether expenses continue to grow below the 16.27% revenue-growth rate seen this quarter.
- Whether other income remains close to 9.85% of pre-tax profit.