Expenses outpaced revenue, cutting Borana Weaves' margin by 7.27 points
Q2 revenue rose +37.05% QoQ, but operating profit fell -1.82% as costs grew +50.44%; operating margin remained above the peer median.
Filed 02 Nov 2026, 17:26 IST · after market close · Borana Weaves Ltd (BORANA)
Key takeaways
- Revenue grew +37.05% QoQ, but expenses rose +50.44%, leaving operating profit down -1.82%.
- Operating margin narrowed 7.27 percentage points to 18.36% as costs grew faster than revenue.
- Net profit fell -1.94% QoQ despite interest expense declining -8.11%, as the tax rate rose 0.51 percentage points.
Price around the results
Sales growth did not translate into operating earnings
Borana Weaves reported standalone revenue growth of +37.05% QoQ in Q2FY27, but operating profit declined -1.82%, showing that the additional sales did not convert into higher operating earnings. The earnings squeeze came as expenses increased +50.44%, well ahead of revenue.
Margin contracted while other income remained limited
The faster increase in expenses reduced operating margin by 7.27 percentage points to 18.36%. Interest expense fell -8.11%, but the tax rate rose 0.51 percentage points; other income contributed 5.63% of pre-tax profit, so it was not the main driver of reported earnings. Net profit consequently declined -1.94% QoQ.
Margin remains above peers, but quarterly direction worsened
Borana Weaves' 18.36% operating margin was 5.62 percentage points above the 12.74% median for 153 Consumer Discretionary peers that had reported the quarter. Sequentially, margin fell from 25.63% in Q1FY27, marking a clear deterioration from the previous quarter even though it remained above the sector median. The company filed these standalone results after market close on 02 Nov 2026.
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 | ₹138 cr | ₹101 cr | +37.05% |
| Other income | ₹1 cr | ₹1 cr | +29.07% |
| Expenses | ₹113 cr | ₹75 cr | +50.44% |
| Operating profit | ₹25 cr | ₹26 cr | -1.82% |
| Operating margin (%) | 18.36% | 25.63% | — |
| Interest | ₹1 cr | ₹1 cr | -8.11% |
| Depreciation | ₹6 cr | ₹6 cr | +1.84% |
| Profit before tax | ₹20 cr | ₹20 cr | -1.35% |
| Tax | ₹4 cr | ₹3 cr | +1.43% |
| Net profit | ₹16 cr | ₹16 cr | -1.94% |
| EPS (₹) | ₹6.06 | ₹6.18 | -1.94% |
Operating margin of 18.36% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 18.36% after the 7.27-percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue, after rising +50.44% versus revenue growth of +37.05%.
- Whether the tax rate moves back from 17.98% after rising 0.51 percentage points QoQ.