Costs erase DOMS's sales growth as Q2FY27 margin drops to 12.39%
Revenue rose +17.58% YoY, but expenses grew +24.89%, driving a 5.13-point margin decline and -37.03% net profit.
Filed 02 Nov 2026, 18:37 IST · after market close · DOMS Industries Ltd (DOMS)
Key takeaways
- Consolidated net profit fell -37.03% YoY as expenses grew +24.89%, faster than revenue at +17.58%.
- Operating margin narrowed 5.13 percentage points YoY to 12.39%, extending the decline seen across the four preceding quarters.
- Sequentially, operating margin recovered 0.08 percentage points, but profit before tax fell -16.67% after other income moved to a Rs -5.64 cr loss.
Price around the results
Sales grew, but profit declined
DOMS reported consolidated revenue growth of +17.58% YoY, but operating profit fell -16.85% and net profit fell -37.03%. The gap came from expenses growing +24.89%, which more than absorbed the increase in sales. The lower tax rate, down 0.83 percentage points YoY, only partly cushioned the decline in pre-tax profit.
A small sequential margin recovery did not lift profit
Sequentially, revenue declined -0.41% while expenses declined -0.50%, allowing operating margin to improve 0.08 percentage points. Profit before tax still fell -16.67%, as other income moved from Rs 3.98 cr in Q1FY27 to a Rs -5.64 cr loss in Q2FY27. Other income accounted for -11.07% of pre-tax profit, making it a drag rather than a support to reported earnings.
Margin remains near the sector median after a long slide
Operating margin had declined in each of the four quarters through Q1FY27, from 17.56% in Q1FY26 to 12.31%, before the 0.08-point recovery this quarter. DOMS was 0.27 percentage points above the 12.12% median margin among 37 Fast Moving Consumer Goods peers that had reported the quarter. The current margin therefore sits only slightly above the sector comparison despite the sequential improvement.
The stock reaction is yet to be recorded
The consolidated results were filed after market close, so there is no current market reaction to assess. After the previous eight results, the stock rose six times and fell twice, with a median absolute move of 2.05%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹668 cr | ₹671 cr | -0.41% | +17.58% |
| Other income | ₹-6 cr | ₹4 cr | — | — |
| Expenses | ₹585 cr | ₹588 cr | -0.50% | +24.89% |
| Operating profit | ₹83 cr | ₹83 cr | +0.22% | -16.85% |
| Operating margin (%) | 12.39% | 12.31% | — | — |
| Interest | ₹2 cr | ₹2 cr | +0.99% | -2.86% |
| Depreciation | ₹24 cr | ₹23 cr | +3.16% | +9.58% |
| Profit before tax | ₹51 cr | ₹61 cr | -16.67% | -37.72% |
| Tax | ₹13 cr | ₹16 cr | -20.37% | -39.74% |
| Net profit | ₹38 cr | ₹45 cr | -15.37% | -37.03% |
| EPS (₹) | ₹6.12 | ₹7.33 | -16.51% | -36.25% |
Operating margin of 12.39% compares with a Fast Moving Consumer Goods sector median of 12.12% across 37 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 12.39% after the four-quarter decline through Q1FY27.
- Whether expenses continue to grow more slowly than revenue after the YoY gap of +24.89% versus +17.58%.
- Whether other income recovers from the Rs -5.64 cr loss recorded in Q2FY27.