Campus revenue rose 17.37%, but margin fell 1.62 points
Expenses grew faster than revenue sequentially, while other income made up 15.48% of standalone pre-tax profit.
Filed 05 Nov 2026, 12:55 IST · Campus Activewear Ltd (CAMPUS)
Key takeaways
- Standalone revenue rose 17.37% QoQ, but expenses grew 19.59%, cutting operating margin by 1.62 percentage points to 12.57%.
- Net profit fell 6.89% QoQ to Rs 24.34 cr as profit before tax declined 6.49% and other income contributed 15.48% of PBT.
- Management said H1FY27 volume grew 11% YoY and quarterly production reached a record, while festive inventory was built for Q3.
Price around the results
Revenue momentum did not flow through to profit
Campus reported standalone revenue growth of 17.37% QoQ, but operating profit rose only 3.93%, as the increase in expenses absorbed most of the operating leverage. Profit before tax fell 6.49% and net profit declined 6.89% to Rs 24.34 cr. Lower other income also widened the gap between operating profit and profit after tax.
Faster cost growth squeezed the operating margin
Expenses grew 19.59% QoQ against 17.37% revenue growth, reducing operating margin by 1.62 percentage points. Interest expense rose 5.61% and depreciation increased 5.48%, adding pressure below operating profit. Other income fell 36.44% and still represented 15.48% of PBT, while the tax rate increased 0.31 percentage points.
Margin stayed above peers despite the sequential decline
Campus's 12.57% operating margin was 1.01 percentage points above the 11.56% median for the 262 Consumer Discretionary peers that had reported. However, margin fell from 14.19% in Q1FY27 to 12.57% in Q2FY27, marking a clear sequential deterioration. The available comparison is sequential because no year-on-year block is provided.
Management linked H1 volume growth to execution and festive preparation
Management said H1FY27 volume grew 11% YoY even though the festive season shifted to Q3, and said quarterly production reached its highest-ever level. The company said it had built inventory strategically for anticipated Q3 festive demand, which also increased working-capital days. Management also said Campus refreshed its brand identity, reworked stores, expanded Women's and Kids' ranges, and launched Elan and performance footwear categories.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹452 cr | ₹385 cr | +17.37% |
| Other income | ₹5 cr | ₹8 cr | -36.44% |
| Expenses | ₹395 cr | ₹331 cr | +19.59% |
| Operating profit | ₹57 cr | ₹55 cr | +3.93% |
| Operating margin (%) | 12.57% | 14.19% | — |
| Interest | ₹5 cr | ₹5 cr | +5.61% |
| Depreciation | ₹24 cr | ₹23 cr | +5.48% |
| Profit before tax | ₹33 cr | ₹35 cr | -6.49% |
| Tax | ₹9 cr | ₹9 cr | -5.36% |
| Net profit | ₹24 cr | ₹26 cr | -6.89% |
| EPS (₹) | ₹0.79 | ₹0.86 | -8.14% |
Operating margin of 12.57% compares with a Consumer Discretionary sector median of 11.56% across 262 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.
This quarter
- Campus delivered 11% year-on-year volume growth in H1FY27 despite the festive season shifting to Q3.
- Campus achieved its highest-ever quarterly production, reflecting enhanced manufacturing capabilities and operational execution.
Guidance & outlook
- The company built inventory strategically to cater to anticipated festive demand in Q3.
New products
- Campus expanded its Women’s and Kids’ ranges and launched the Elan and performance footwear categories.
New initiatives
- Campus refreshed its brand identity, launched new campaigns and reimagined its stores.
- Campus ran Evolve, a learning programme covering self-awareness, core capabilities and self-learning.
- Campus conducted worker surveys, focus groups and working-environment audits across its plants.
Problems & risks
- The company said profit growth occurred despite an increasingly challenging macro environment.
- The strategic festive inventory build-up increased working capital days.
What to watch
- Whether operating margin recovers from 12.57% after the 1.62-percentage-point QoQ decline.
- Whether expense growth falls below the Q2FY27 rate of 19.59%.
- Whether the Q3 festive inventory build translates into volume growth above the 11% H1FY27 rate.