Revenue fell 28.14% as operating margin slipped to 2.34%
Expenses fell 24.69%, less than revenue, while a Rs 0.91 cr tax credit lifted net profit despite a Rs 0.40 cr pre-tax loss.
Filed 02 Nov 2026, 18:27 IST · after market close · JHS Svendgaard Laboratories Ltd (JHS)
Key takeaways
- On a consolidated basis, revenue declined 28.14% QoQ to Rs 21.83 cr, while expenses declined 24.69%, leaving operating margin down 4.48 percentage points at 2.34%.
- Net profit of Rs 0.51 cr came despite a Rs 0.40 cr pre-tax loss, helped by a Rs 0.91 cr tax credit and Rs 1.24 cr of other income.
- Q2FY27 operating margin was 9.92 percentage points below the 12.26% median for 38 reported FMCG peers, placing JHS fifth from the bottom.
Price around the results
Revenue contraction reversed the Q1 margin recovery
Revenue fell 28.14% QoQ to Rs 21.83 cr, while expenses fell 24.69%; costs therefore declined more slowly than sales. Operating margin narrowed 4.48 percentage points to 2.34%, and net profit fell 53.21% to Rs 0.51 cr.
Reported profit was supported by tax and non-operating items
Interest rose 14.29% QoQ to Rs 0.32 cr and depreciation was broadly unchanged at Rs 1.83 cr, pushing profit before tax to a Rs 0.40 cr loss despite Rs 0.51 cr of operating profit. A Rs 0.91 cr tax credit produced a 226.46% tax rate, while other income of Rs 1.24 cr was equivalent to -310.00% of pre-tax profit. The resulting net profit is therefore not a clean measure of operating earnings.
Margin remains below peers after a sharp quarterly swing
Operating margin moved from -4.98% in Q4FY26 to 6.82% in Q1FY27, before falling to 2.34% in Q2FY27. The latest margin was 9.92 percentage points below the 12.26% median for 38 FMCG peers that have reported, ranking JHS fifth from the bottom.
Results were filed after market close
The consolidated results were filed at 18:27 IST on 2 November 2026, after market close. A stock reaction is therefore not part of this early read.
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 | ₹22 cr | ₹30 cr | -28.14% |
| Other income | ₹1 cr | ₹0 cr | +1277.78% |
| Expenses | ₹21 cr | ₹28 cr | -24.69% |
| Operating profit | ₹1 cr | ₹2 cr | -75.36% |
| Operating margin (%) | 2.34% | 6.82% | — |
| Interest | ₹0 cr | ₹0 cr | +14.29% |
| Depreciation | ₹2 cr | ₹2 cr | +0.55% |
| Profit before tax | ₹-0 cr | ₹0 cr | — |
| Tax | ₹-1 cr | ₹-1 cr | +11.65% |
| Net profit | ₹1 cr | ₹1 cr | -53.21% |
| EPS (₹) | ₹0.06 | ₹0.12 | -50.00% |
Operating margin of 2.34% compares with a Fast Moving Consumer Goods sector median of 12.26% across 38 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 21.83 cr after the 28.14% QoQ decline.
- Whether operating margin moves up from 2.34% after the 4.48 percentage-point QoQ drop.
- Whether the Rs 0.91 cr tax credit and 226.46% tax rate continue to affect reported net profit.