Century Enka’s margin falls 9.59 percentage points sequentially
Revenue was broadly flat, but expenses grew much faster, cutting net profit 70.03% and leaving operating margin below the peer median.
Filed 27 Oct 2026, 14:02 IST · Century Enka Ltd (CENTENKA)
Key takeaways
- Consolidated net profit fell 70.03% sequentially to Rs 18.49 cr as expenses grew 12.13% while revenue grew only 0.71%.
- Operating margin narrowed 9.59 percentage points to 5.88%, leaving Century Enka 6.34 percentage points below the 12.22% median for 65 reported sector peers.
- Other income contributed 35.31% of pre-tax profit, while the tax rate rose 9.81 percentage points to 32.42%.
Price around the results
Near-flat revenue could not absorb the cost increase
Century Enka’s consolidated revenue rose just 0.71% sequentially to Rs 558.23 cr, while expenses increased 12.13% to Rs 525.39 cr. That mismatch reduced operating profit 61.69% to Rs 32.84 cr and net profit 70.03% to Rs 18.49 cr. EPS fell 70.04% to Rs 8.46 from Rs 28.24 in Q1FY27.
Margin compression was compounded by tax and other-income effects
Costs grew faster than revenue, narrowing operating margin by 9.59 percentage points to 5.88%. The tax rate also increased 9.81 percentage points to 32.42%, adding to the pressure on net profit. Other income accounted for 35.31% of pre-tax profit, so reported earnings had a material non-operating contribution.
Operating margin was below the sector comparison
Century Enka’s 5.88% operating margin was 6.34 percentage points below the 12.22% median among 65 Consumer Discretionary peers that had reported. The company ranked 14th from the bottom on this measure. Sequentially, this was a sharp reversal from the 15.47% margin recorded in Q1FY27.
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 | ₹558 cr | ₹554 cr | +0.71% |
| Other income | ₹10 cr | ₹9 cr | +8.78% |
| Expenses | ₹525 cr | ₹469 cr | +12.13% |
| Operating profit | ₹33 cr | ₹86 cr | -61.69% |
| Operating margin (%) | 5.88% | 15.47% | — |
| Interest | ₹0 cr | ₹0 cr | +2.17% |
| Depreciation | ₹15 cr | ₹14 cr | +1.73% |
| Profit before tax | ₹27 cr | ₹80 cr | -65.68% |
| Tax | ₹9 cr | ₹18 cr | -50.80% |
| Net profit | ₹18 cr | ₹62 cr | -70.03% |
| EPS (₹) | ₹8.46 | ₹28.24 | -70.04% |
Operating margin of 5.88% compares with a Consumer Discretionary sector median of 12.22% across 65 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.85% | -2.62% |
Volume on the results session was 2.70× its 20-day average.
What to watch
- Whether operating margin recovers from 5.88% in the next quarter.
- Whether expense growth moderates from the sequential 12.13% increase.
- Whether other income remains near 35.31% of pre-tax profit and the tax rate moves below 32.42%.