HLV slips into a Rs 6.99 cr loss as costs overwhelm revenue
Standalone operating margin dropped 10.40 percentage points sequentially, while depreciation rose 37.86% and the stock fell 2.09% on the results date.
Filed 30 Oct 2026, 13:14 IST · HLV Ltd (HLVLTD)
Key takeaways
- HLV Ltd’s standalone operating margin fell 10.40 percentage points sequentially as expenses rose 8.52% while revenue declined 1.93%.
- The company moved to a standalone net loss of Rs 6.99 cr from Rs 0.78 cr sequentially, with depreciation rising 37.86%.
- Its -7.91% operating margin was 21.00 percentage points below the 13.09% median for 129 Consumer Discretionary peers.
Price around the results
Costs turned a modest operating profit into a loss
HLV’s standalone revenue declined 1.93% sequentially, but expenses increased 8.52%, pushing operating profit from Rs 1.16 cr to a loss of Rs 3.62 cr. The resulting operating margin of -7.91% was down 10.40 percentage points from 2.49% in Q1FY27. The deterioration below the operating line was compounded by depreciation, which rose 37.86% to Rs 6.30 cr.
Other income did not offset the operating weakness
Interest expense declined 4.69% sequentially to Rs 0.61 cr, but the benefit was outweighed by higher depreciation and operating costs. Other income rose 8.26% to Rs 3.54 cr, yet the company still reported a standalone loss before tax of Rs 6.99 cr. The zero tax rate did not flatter the reported loss, as there was no tax charge against the loss.
HLV ranked near the bottom of reported sector peers
HLV’s -7.91% operating margin was 21.00 percentage points below the 13.09% median among 129 Consumer Discretionary companies that had reported the quarter. It ranked ninth from the bottom on this measure. Sequentially, this was a sharp reversal from the 2.49% margin recorded in Q1FY27.
Shares fell after the results
HLV’s stock declined 2.09% on the results date, with a relative return of -2.60%. The result-day move followed an opening gap of 0.17% and came with volume at 1.05 times the reference level.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹46 cr | ₹47 cr | -1.93% |
| Other income | ₹4 cr | ₹3 cr | +8.26% |
| Expenses | ₹49 cr | ₹46 cr | +8.52% |
| Operating profit | ₹-4 cr | ₹1 cr | — |
| Operating margin (%) | -7.91% | 2.49% | — |
| Interest | ₹1 cr | ₹1 cr | -4.69% |
| Depreciation | ₹6 cr | ₹5 cr | +37.86% |
| Profit before tax | ₹-7 cr | ₹-1 cr | -796.15% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-7 cr | ₹-1 cr | -796.15% |
| EPS (₹) | ₹-0.11 | ₹-0.01 | -1000.00% |
Operating margin of -7.91% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.09% | -2.60% |
Volume on the results session was 1.05× its 20-day average.
What to watch
- Whether standalone operating margin recovers above the 2.49% recorded in Q1FY27.
- Whether expenses stop growing faster than revenue after the 8.52% sequential rise in expenses against a 1.93% revenue decline.
- Whether depreciation moderates from Rs 6.30 cr after rising 37.86% sequentially.