Revenue jumps 34.36%, but Indian Card Clothing remains operationally loss-making
The operating margin improved 11.28 percentage points as revenue grew faster than expenses, but other income accounted for 186.46% of pre-tax profit.
Filed 03 Nov 2026, 20:50 IST · after market close · Indian Card Clothing Company Ltd (INDIANCARD)
Key takeaways
- Consolidated revenue rose +34.36% QoQ, faster than expenses at +22.79%, lifting operating margin by 11.28 percentage points though it remained negative at -19.75%.
- Other income accounted for 186.46% of pre-tax profit, while the 8.28-percentage-point tax-rate reduction partly cushioned a -14.74% QoQ decline in pre-tax profit.
- Net profit fell -5.92% QoQ to Rs 4.29 cr despite the narrower operating loss, as other income declined -11.03% and interest expense rose +25.00%.
Price around the results
Revenue growth narrowed the operating loss
In consolidated Q2FY27 results, revenue increased +34.36% QoQ to Rs 13.14 cr, while expenses rose +22.79% to Rs 15.73 cr. That gap reduced the operating loss to Rs 2.59 cr from Rs 3.03 cr and improved operating margin by 11.28 percentage points, but the margin remained -19.75%. Interest expense rose +25.00% and depreciation increased +7.77% QoQ.
Reported profit remained dependent on other income
Other income declined -11.03% QoQ to Rs 8.95 cr, yet it represented 186.46% of pre-tax profit of Rs 4.80 cr because the operating business remained loss-making. Pre-tax profit fell -14.74% QoQ, while a lower tax rate of 10.64% versus 18.92% partly limited the decline in net profit to -5.92%. This makes the Rs 4.29 cr net profit less reflective of operating earnings.
Margin remains well below the reported peer median
Among 188 Consumer Discretionary peers that had reported, the company's -19.75% operating margin was 31.98 percentage points below the sector median of 12.23%; it ranked 10th from the bottom. Only Q1FY27 is available in the quarter trend, so the current data shows sequential improvement rather than a multi-quarter direction. The consolidated results were filed after market close on 3 November 2026, so there is no market reaction to assess yet.
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 | ₹13 cr | ₹10 cr | +34.36% |
| Other income | ₹9 cr | ₹10 cr | -11.03% |
| Expenses | ₹16 cr | ₹13 cr | +22.79% |
| Operating profit | ₹-3 cr | ₹-3 cr | +14.52% |
| Operating margin (%) | -19.75% | -31.03% | — |
| Interest | ₹0 cr | ₹0 cr | +25.00% |
| Depreciation | ₹1 cr | ₹1 cr | +7.77% |
| Profit before tax | ₹5 cr | ₹6 cr | -14.74% |
| Tax | ₹1 cr | ₹1 cr | -52.34% |
| Net profit | ₹4 cr | ₹5 cr | -5.92% |
| EPS (₹) | ₹7.21 | ₹7.68 | -6.12% |
Operating margin of -19.75% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves further from -19.75% after the 11.28-percentage-point QoQ recovery.
- Whether other income's contribution falls from 186.46% of pre-tax profit.
- Whether the tax rate remains below the Q1FY27 level of 18.92%.