Hardwyn's margin slips as expenses outpace 44.08% revenue growth
Q2 consolidated revenue rose 44.08% sequentially, but faster cost growth cut operating margin to 10.65% and a higher tax rate limited profit growth.
Filed 13 Nov 2026, 19:05 IST · after market close · Hardwyn India Ltd (HARDWYN)
Key takeaways
- Hardwyn's consolidated revenue rose 44.08% sequentially, but expenses grew faster at 47.92%.
- Operating margin narrowed by 2.35 percentage points to 10.65% as cost growth outpaced sales growth.
- Net profit increased 17.86% sequentially, while the tax rate rose 4.61 percentage points to 29.00%.
Price around the results
Revenue momentum came with faster cost growth
Hardwyn's consolidated revenue increased 44.08% sequentially to Rs 49.85 cr, while operating profit rose 18.00% to Rs 5.31 cr. Expenses grew 47.92%, outpacing revenue and limiting the conversion of higher sales into operating profit. The results were filed after market close, so the market response is not yet covered.
Margin pressure was operational, with tax adding below the line
Operating margin fell 2.35 percentage points to 10.65% because expenses grew faster than revenue. Interest was unchanged sequentially, while depreciation increased 1.96%, so neither was the main source of the margin pressure. The tax rate rose 4.61 percentage points to 29.00%, causing net profit growth of 17.86% to trail pre-tax profit growth of 25.68%; other income accounted for 3.66% of pre-tax profit.
Margin sits below the Consumer Discretionary peer median
Hardwyn's 10.65% operating margin was 0.53 percentage points below the 11.18% median for 361 Consumer Discretionary companies that had reported the quarter. With only Q1FY27 available for the preceding quarter, the sequential margin decline is the clear direction so far rather than a multi-quarter trend.
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 |
|---|---|---|---|
| Revenue | ₹50 cr | ₹35 cr | +44.08% |
| Other income | ₹0 cr | ₹0 cr | +466.67% |
| Expenses | ₹45 cr | ₹30 cr | +47.92% |
| Operating profit | ₹5 cr | ₹5 cr | +18.00% |
| Operating margin (%) | 10.65% | 13.00% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹1 cr | ₹1 cr | +1.96% |
| Profit before tax | ₹5 cr | ₹4 cr | +25.68% |
| Tax | ₹1 cr | ₹1 cr | +50.00% |
| Net profit | ₹3 cr | ₹3 cr | +17.86% |
| EPS (₹) | ₹0.05 | ₹0.06 | -16.67% |
Operating margin of 10.65% compares with a Consumer Discretionary sector median of 11.18% across 361 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 10.65% after the 2.35-percentage-point sequential decline.
- Whether expense growth falls below the 47.92% sequential pace and the 44.08% revenue growth rate.
- Whether the tax rate moves back from 29.00% toward the prior quarter's 24.39%.