Revenue growth outpaced costs, lifting Shankara Buildpro’s margin
Operating margin improved 0.17 percentage points sequentially, but remained well below the sector median as interest costs rose 15.21%.
Filed 05 Nov 2026, 13:36 IST · Shankara Buildpro Ltd (BUILDPRO)
Key takeaways
- Revenue grew 20.67% sequentially, slightly faster than expenses at 20.46%, helping operating profit rise 26.94%.
- Shankara Buildpro’s 3.40% operating margin was 8.16 percentage points below the 11.56% median for 262 Consumer Discretionary peers.
- Net profit rose 29.09% sequentially, but EPS fell 74.19%, creating a sharp divergence in per-share performance.
Price around the results
Revenue growth gave operating profit room to expand
In consolidated Q2FY27 results, revenue grew 20.67% sequentially while expenses rose 20.46%, so operating profit increased faster at 26.94%. This lifted operating margin by 0.17 percentage points from Q1FY27, indicating modest operating leverage rather than a major cost reset.
Higher interest costs limited profit conversion
Interest expense rose 15.21% sequentially, reducing the benefit of the operating profit increase as profit before tax grew 29.46%. The tax rate also increased by 0.21 percentage points, while other income was negative and represented -0.35% of pre-tax profit, so reported profit was not supported by ancillary income. EPS fell 74.19% even as net profit increased 29.09%.
Margin remains below the Consumer Discretionary peer set
The company’s 3.40% operating margin was below the 11.56% median among 262 Consumer Discretionary peers that had reported the quarter. The 0.17-percentage-point sequential improvement therefore came from a low base and did not close the sector gap.
Shares rose on the results filing
The stock gained 5.47% on the reaction day, with the opening gap at 2.73% and volume at 4.42 times the reference level. The market response was positive even though operating margin remained well below the sector median.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,280 cr | ₹1,890 cr | +20.67% |
| Other income | ₹-0 cr | ₹0 cr | — |
| Expenses | ₹2,203 cr | ₹1,829 cr | +20.46% |
| Operating profit | ₹78 cr | ₹61 cr | +26.94% |
| Operating margin (%) | 3.40% | 3.23% | — |
| Interest | ₹12 cr | ₹10 cr | +15.21% |
| Depreciation | ₹3 cr | ₹3 cr | +2.67% |
| Profit before tax | ₹62 cr | ₹48 cr | +29.46% |
| Tax | ₹16 cr | ₹12 cr | +30.55% |
| Net profit | ₹46 cr | ₹36 cr | +29.09% |
| EPS (₹) | ₹3.81 | ₹14.76 | -74.19% |
Operating margin of 3.40% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.47% | +3.07% |
Volume on the results session was 4.42× its 20-day average.
What to watch
- Whether operating margin holds above 3.40% after the 0.17-percentage-point sequential improvement.
- Whether interest-cost growth moderates from 15.21% sequentially.
- Whether revenue growth continues to exceed expense growth after the 20.67% versus 20.46% comparison in Q2FY27.