GINNIFILA expands margin despite sequential revenue decline
Lower expenses supported operating profit and net profit, while a lower tax rate offset a sharp rise in interest costs.
Filed 02 Nov 2026, 17:34 IST · after market close · GINNIFILA (GINNIFILA)
Key takeaways
- Standalone operating margin widened 0.57 percentage points to 14.88% QoQ as expenses fell 2.28% against a 1.63% revenue decline.
- Net profit rose 3.09% QoQ, helped by a 1.12 percentage-point fall in the tax rate despite interest costs rising 30.56%.
- Other income accounted for 5.84% of pre-tax profit, so reported earnings were primarily supported by operating performance.
Lower revenue did not prevent operating profit growth
GINNIFILA's standalone revenue declined 1.63% QoQ, but operating profit increased 2.31%. Expenses fell faster than revenue, by 2.28%, allowing the operating margin to widen by 0.57 percentage points to 14.88%.
Cost control lifted margin, but interest expense rose
The margin improvement came from the sharper reduction in expenses relative to revenue, rather than from topline growth. Interest expense increased 30.56% QoQ to 0.94, which limited the conversion of operating profit into pre-tax profit.
Lower tax rate supported net profit
The tax rate fell 1.12 percentage points to 25.29%, helping net profit rise 3.09% despite higher interest costs. Other income contributed 5.84% of pre-tax profit, so it was not the main driver of earnings. The standalone results were filed after market close on 2 November 2026.
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 | ₹101 cr | ₹103 cr | -1.63% |
| Other income | ₹1 cr | ₹1 cr | +15.87% |
| Expenses | ₹86 cr | ₹88 cr | -2.28% |
| Operating profit | ₹15 cr | ₹15 cr | +2.31% |
| Operating margin (%) | 14.88% | 14.31% | — |
| Interest | ₹1 cr | ₹1 cr | +30.56% |
| Depreciation | ₹2 cr | ₹2 cr | +0.85% |
| Profit before tax | ₹12 cr | ₹12 cr | +1.54% |
| Tax | ₹3 cr | ₹3 cr | -2.77% |
| Net profit | ₹9 cr | ₹9 cr | +3.09% |
| EPS (₹) | ₹1.09 | ₹1.06 | +2.83% |
What to watch
- Whether operating margin holds above 14.88% in the next quarter.
- Whether expenses continue to grow more slowly than revenue after falling 2.28% QoQ.
- Whether interest expense moderates from its 30.56% QoQ increase.