Revenue surged, but faster cost growth cut Fiberweb's margin
Standalone operating margin fell 7.47 percentage points sequentially, while a higher tax rate and other income shaped the profit increase.
Filed 29 Oct 2026, 18:13 IST · after market close · Fiberweb (India) Ltd (FIBERWEB)
Key takeaways
- Standalone revenue rose 211.76% quarter on quarter, but expenses grew faster at 239.93%, pulling operating margin down to 9.97%.
- Net profit increased 370.37% sequentially to Rs 1.27 cr, although other income contributed 14.71% of profit before tax.
- Operating margin fell from 22.2% in Q1FY26 to 17.44% in Q1FY27 and 9.97% in Q2FY27, below the 12.74% median for 107 Consumer Discretionary peers.
Price around the results
Sharp sequential recovery came with weaker operating leverage
Fiberweb's standalone revenue rose 211.76% sequentially, while operating profit increased 78.49%. The mismatch reflects weaker operating leverage: expenses grew 239.93%, faster than revenue, and operating margin narrowed by 7.47 percentage points to 9.97%.
Higher interest and tax limited the earnings conversion
Interest expense rose 33.33% sequentially to Rs 0.4 cr, while depreciation was unchanged at Rs 1.21 cr. The tax rate increased to 25.17% from 24.99%, so the 370.37% rise in net profit to Rs 1.27 cr partly reflects the low Q1FY27 base rather than a comparable improvement in operating margin. Other income accounted for 14.71% of profit before tax, making it a notable part of reported earnings.
Margin has declined across the last two quarter-to-quarter observations
Operating margin fell from 22.2% in Q1FY26 to 17.44% in Q1FY27 and then to 9.97% in Q2FY27. The latest margin was 2.77 percentage points below the 12.74% median among 107 Consumer Discretionary peers that had reported the quarter.
Results were filed after market hours
The standalone results were filed at 18:13 IST on 29 October 2026, after market close. There is no reported market reaction yet, so the stock's response cannot be placed against its past post-results trading pattern.
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 | ₹31 cr | ₹10 cr | +211.76% |
| Other income | ₹0 cr | ₹0 cr | +66.67% |
| Expenses | ₹28 cr | ₹8 cr | +239.93% |
| Operating profit | ₹3 cr | ₹2 cr | +78.49% |
| Operating margin (%) | 9.97% | 17.44% | — |
| Interest | ₹0 cr | ₹0 cr | +33.33% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹2 cr | ₹0 cr | +372.22% |
| Tax | ₹0 cr | ₹0 cr | +377.78% |
| Net profit | ₹1 cr | ₹0 cr | +370.37% |
| EPS (₹) | ₹0.44 | ₹0.09 | +388.89% |
Operating margin of 9.97% compares with a Consumer Discretionary sector median of 12.74% across 107 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.97% after its sequential 7.47-percentage-point decline.
- Whether expense growth moderates from 239.93% to below the 211.76% revenue growth rate.
- Whether other income remains a material contributor after accounting for 14.71% of profit before tax.