HMVL margin drops as expenses rise despite flat revenue
Net profit edged up 1.70% QoQ because higher other income and a lower tax rate offset weaker operating profit.
Filed 04 Nov 2026, 13:09 IST · HMVL (HMVL)
Key takeaways
- Consolidated operating profit fell 20.73% QoQ as expenses rose 3.11% while revenue declined 0.30%.
- Operating margin narrowed 2.94 percentage points to 11.40%, marking a sharp sequential loss in operating leverage.
- Net profit rose 1.70% QoQ to Rs 52.04 cr, but other income contributed 75.94% of pre-tax profit.
Operating profit fell despite near-flat revenue
HMVL's consolidated revenue declined 0.30% QoQ to Rs 196.58 cr, while expenses increased 3.11% to Rs 174.17 cr. The faster rise in costs reduced operating profit by 20.73% to Rs 22.41 cr. This pulled operating margin down 2.94 percentage points to 11.40%.
Other income drove reported profit
Net profit increased 1.70% QoQ even as operating profit fell, because other income rose 10.56% to Rs 51.83 cr. Other income accounted for 75.94% of pre-tax profit, making reported earnings substantially less dependent on operations this quarter. The tax rate also fell 0.82 percentage points to 18.67%, providing a further lift to net profit.
Sequential momentum weakened at the operating level
Revenue was broadly unchanged from Q1FY27, but the combination of higher expenses and a 12.33% decline in interest costs did not prevent operating profit from falling. Depreciation increased 5.82%, adding to the pressure below operating profit, although lower interest and tax costs helped limit the decline in pre-tax profit to 1.23%. With only one prior quarter in the trend series, the available comparison points to a sharp quarter-on-quarter margin contraction rather than a confirmed multi-quarter direction.
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 | ₹197 cr | ₹197 cr | -0.30% |
| Other income | ₹52 cr | ₹47 cr | +10.56% |
| Expenses | ₹174 cr | ₹169 cr | +3.11% |
| Operating profit | ₹22 cr | ₹28 cr | -20.73% |
| Operating margin (%) | 11.40% | 14.34% | — |
| Interest | ₹2 cr | ₹2 cr | -12.33% |
| Depreciation | ₹4 cr | ₹4 cr | +5.82% |
| Profit before tax | ₹68 cr | ₹69 cr | -1.23% |
| Tax | ₹13 cr | ₹13 cr | -5.42% |
| Net profit | ₹52 cr | ₹51 cr | +1.70% |
| EPS (₹) | ₹7.06 | ₹6.95 | +1.58% |
What to watch
- Whether operating margin recovers from 11.40% after the 2.94-percentage-point QoQ decline.
- Whether expenses remain below the Rs 174.17 cr reported for Q2FY27.
- Whether other income stays below the 75.94% share of pre-tax profit recorded this quarter.