Revenue grew, but profit depended on other income
Expenses rose faster than revenue, leaving operating margin at -5.89%, 18.98 percentage points below the sector median.
Filed 30 Oct 2026, 11:49 IST · Digidrive Distributors Ltd (DIGIDRIVE)
Key takeaways
- Consolidated net profit rose 2,307.41% QoQ to Rs 6.50 cr, but other income was 111.80% of pre-tax profit, making the result dependent on non-operating income.
- Revenue grew 34.37% QoQ, but expenses grew 47.17%, pushing operating margin down 9.21 percentage points to -5.89%.
- Digidrive's -5.89% operating margin was 18.98 percentage points below the 13.09% median for 129 Consumer Discretionary peers.
Price around the results
Revenue growth did not reach operating profit
In the consolidated Q2FY27 results, revenue increased 34.37% QoQ, but expenses rose faster at 47.17%. That cost mismatch reduced operating margin by 9.21 percentage points from Q1FY27 and turned operating profit into a loss.
Other income drove the reported profit
Other income rose 3,444.44% QoQ and accounted for 111.80% of pre-tax profit, more than offsetting the operating loss. The lower tax rate, down 0.93 percentage points to 24.07%, provided a smaller additional lift to net profit. Interest expense fell 33.33% and depreciation fell 18.18%, but neither change addressed the operating loss.
Operating margin ranks near the bottom of the peer set
Digidrive's -5.89% operating margin was 18.98 percentage points below the 13.09% median among 129 Consumer Discretionary companies that had reported the same quarter. It ranked ninth from the bottom in that comparison. The available quarter-on-quarter trend shows a decline from Q1FY27's 3.32% margin, while no year-on-year comparison is provided.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹14 cr | ₹10 cr | +34.37% |
| Other income | ₹10 cr | ₹0 cr | +3444.44% |
| Expenses | ₹15 cr | ₹10 cr | +47.17% |
| Operating profit | ₹-1 cr | ₹0 cr | — |
| Operating margin (%) | -5.89% | 3.32% | — |
| Interest | ₹0 cr | ₹0 cr | -33.33% |
| Depreciation | ₹0 cr | ₹0 cr | -18.18% |
| Profit before tax | ₹9 cr | ₹0 cr | +2277.78% |
| Tax | ₹2 cr | ₹0 cr | +2188.89% |
| Net profit | ₹7 cr | ₹0 cr | +2307.41% |
| EPS (₹) | ₹1.69 | ₹0.07 | +2314.29% |
Operating margin of -5.89% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -5.89% after expenses grew 47.17% QoQ.
- Whether reported profit is supported by operating profit rather than other income, which equalled 111.80% of pre-tax profit this quarter.
- Where operating margin stands against the 13.09% sector median in the next reported quarter.