Revenue growth failed to prevent a sequential margin squeeze
Expenses outpaced revenue, while other income accounted for 102.14% of pre-tax profit and no tax charge kept net profit equal to PBT.
Filed 13 Nov 2026, 20:12 IST · after market close · Harrisons Malayalam Ltd (HARRMALAYA)
Key takeaways
- Consolidated revenue rose 24.30% sequentially, but expenses grew faster at 26.02%, cutting operating margin by 1.31 percentage points to 3.24%.
- Net profit fell 28.75% sequentially to Rs 2.80 cr as operating profit declined 11.60% and there was no tax charge to offset the weaker operating result.
- Harrisons Malayalam's 3.24% operating margin was 8.22 percentage points below the 11.46% median for 267 Industrials peers that had reported.
Price around the results
Q2 revenue grew, but operating profit fell
The consolidated result showed revenue increasing 24.30% sequentially, while operating profit declined 11.60%. That mismatch reflects a cost-led quarter: expenses rose 26.02%, faster than revenue, reducing operating margin to 3.24% from 4.55% in Q1FY27. Profit before tax fell 28.75% to Rs 2.80 cr.
Costs drove the 1.31-point margin decline
The faster rise in expenses reduced operating margin by 1.31 percentage points. Depreciation increased 14.29% sequentially, while interest eased 2.11%, so the main pressure came from operating costs rather than finance expense. Other income contributed Rs 2.86 cr and represented 102.14% of pre-tax profit, making earnings quality an important consideration.
Margin remains below the Industrials peer median
Harrisons Malayalam's 3.24% operating margin was 8.22 percentage points below the 11.46% median among 267 Industrials peers that had reported the same quarter.
Results were filed after market close
The consolidated results were filed after market close on 13 November 2026. There is no post-results market reaction to assess yet, so the quarter's immediate read rests on the lower operating profit, the zero tax rate, and the large contribution of other income to pre-tax profit.
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 | ₹155 cr | ₹125 cr | +24.30% |
| Other income | ₹3 cr | ₹3 cr | -10.06% |
| Expenses | ₹150 cr | ₹119 cr | +26.02% |
| Operating profit | ₹5 cr | ₹6 cr | -11.60% |
| Operating margin (%) | 3.24% | 4.55% | — |
| Interest | ₹3 cr | ₹3 cr | -2.11% |
| Depreciation | ₹2 cr | ₹2 cr | +14.29% |
| Profit before tax | ₹3 cr | ₹4 cr | -28.75% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹3 cr | ₹4 cr | -28.75% |
| EPS (₹) | ₹1.52 | ₹2.13 | -28.64% |
Operating margin of 3.24% compares with a Industrials sector median of 11.46% across 267 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 3.24% after the 1.31-percentage-point sequential decline.
- Whether expense growth falls below the 26.02% recorded sequentially, versus revenue growth of 24.30%.
- Whether other income's contribution to pre-tax profit declines from 102.14%.