Revenue growth outpaced costs, lifting Gujarat Raffia's margin by 8.30 points
The standalone quarter also benefited from a lower tax rate, while other income made only a small contribution to pre-tax profit.
Filed 12 Nov 2026, 16:39 IST · after market close · Gujarat Raffia Industries Ltd (GUJRAFFIA)
Key takeaways
- Standalone operating margin widened 8.30 percentage points QoQ to 18.27% as revenue grew +23.96%, ahead of expense growth of +12.66%.
- Standalone net profit rose +210.64% QoQ, helped by a 10.08-percentage-point fall in the tax rate to 15.09%; other income was only 2.91% of pre-tax profit.
- At 18.27%, operating margin was 6.76 percentage points above the 11.51% Industrials median across 230 reporting peers.
Price around the results
Revenue momentum translated into a sharp margin gain
Gujarat Raffia's standalone revenue grew +23.96% QoQ, while expenses rose +12.66%. That operating leverage lifted operating profit +126.60% and widened operating margin by 8.30 percentage points to 18.27%.
Lower tax rate amplified profit growth
Net profit increased +210.64% QoQ, outpacing the operating profit gain because the tax rate fell from 25.17% to 15.09%, a decline of 10.08 percentage points. Interest was unchanged, depreciation rose 2.44%, and other income contributed only 2.91% of pre-tax profit, so the profit increase was not mainly driven by non-operating income.
Margin was above the Industrials peer median
The 18.27% standalone operating margin was 6.76 percentage points above the 11.51% median for 230 Industrials companies that had reported the same quarter. The available trend shows margin rising from 9.97% in Q1FY27 to 18.27% in Q2FY27, rather than a continuing decline.
Market reaction is not yet available
The company filed these standalone results after market close. The stock's response is therefore not yet part of this report, and there is no recent reaction history to establish whether the move was usual for Gujarat Raffia.
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 | ₹12 cr | ₹9 cr | +23.96% |
| Other income | ₹0 cr | ₹0 cr | -64.29% |
| Expenses | ₹10 cr | ₹8 cr | +12.66% |
| Operating profit | ₹2 cr | ₹1 cr | +126.60% |
| Operating margin (%) | 18.27% | 9.97% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹0 cr | ₹0 cr | +2.44% |
| Profit before tax | ₹2 cr | ₹1 cr | +173.02% |
| Tax | ₹0 cr | ₹0 cr | +62.50% |
| Net profit | ₹1 cr | ₹0 cr | +210.64% |
| EPS (₹) | ₹2.71 | ₹0.87 | +211.49% |
Operating margin of 18.27% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin holds above 18.27% after its 8.30-percentage-point QoQ expansion.
- Whether expense growth remains below revenue growth, after +12.66% versus +23.96% QoQ.
- Whether the tax rate remains near 15.09%, compared with 25.17% in Q1FY27.