Butterfly’s Q2 operating margin expands 2.47 points on sequential growth
Standalone revenue grew faster than expenses, but other income still supplied 9.69% of pre-tax profit.
Filed 15 Oct 2026, 14:57 IST · Butterfly Gandhimathi Appliances Ltd (BUTTERFLY)
Key takeaways
- Standalone net profit rose +127.00% sequentially as operating profit increased +109.58%.
- Operating margin expanded 2.47 percentage points because revenue grew +54.99%, faster than expenses at +50.86%.
- Other income contributed 9.69% of pre-tax profit, while the 9.50% operating margin was 0.10 percentage points below the sector median.
Price around the results
Sequential profit growth accelerated in Q2FY27
Butterfly Gandhimathi Appliances reported a sharp sequential improvement in standalone earnings, with net profit rising +127.00% and EPS increasing +127.16%. Operating profit grew +109.58%, giving profit growth a stronger operating base than the revenue increase alone.
Faster revenue growth lifted the operating margin
Revenue grew +54.99% sequentially against expense growth of +50.86%, allowing operating margin to expand by 2.47 percentage points to 9.50%. Interest expense rose +28.57%, while the tax rate fell by 0.42 percentage points. Other income accounted for 9.69% of pre-tax profit, so reported earnings also had a non-operating contribution.
Margin is close to the Consumer Discretionary peer median
Among 11 Consumer Discretionary peers that have reported, Butterfly’s 9.50% operating margin was 0.10 percentage points below the 9.60% median. It ranked sixth from the bottom, despite improving from 7.03% in Q1FY27; the available quarterly trend therefore shows sequential expansion, but not yet a multi-quarter direction.
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 | ₹331 cr | ₹214 cr | +54.99% |
| Other income | ₹3 cr | ₹3 cr | -18.44% |
| Expenses | ₹300 cr | ₹199 cr | +50.86% |
| Operating profit | ₹32 cr | ₹15 cr | +109.58% |
| Operating margin (%) | 9.50% | 7.03% | — |
| Interest | ₹0 cr | ₹0 cr | +28.57% |
| Depreciation | ₹7 cr | ₹6 cr | +13.63% |
| Profit before tax | ₹27 cr | ₹12 cr | +125.73% |
| Tax | ₹7 cr | ₹3 cr | +122.04% |
| Net profit | ₹20 cr | ₹9 cr | +127.00% |
| EPS (₹) | ₹11.29 | ₹4.97 | +127.16% |
Operating margin of 9.50% compares with a Consumer Discretionary sector median of 9.60% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin sustains the 2.47-percentage-point improvement from Q1FY27’s 7.03%.
- Whether expenses continue growing slower than revenue after +50.86% versus +54.99% sequentially.
- Whether other income’s 9.69% share of pre-tax profit becomes smaller or larger.