JSW Dulux margin falls as costs outpace revenue growth
Revenue grew +9.26% QoQ, but expenses rose +12.37%, reducing operating margin by 2.44 percentage points.
Filed 11 Aug 2026, 16:36 IST · after market close · JSW Dulux Ltd (JSWDULUX)
Key takeaways
- Operating margin narrowed by 1.58 percentage points YoY to 11.93% as revenue growth was -3.02% and expenses declined only -1.25%.
- Net profit declined -12.41% YoY to Rs 79.72 cr, with the tax rate rising by 6.56 percentage points to 32.24%.
- Other income accounted for 21.75% of pre-tax profit, making reported earnings less dependent on operating performance alone.
Price around the results
Q1FY27 revenue recovery did not convert into operating profit
On a consolidated basis, revenue growth was +9.26% QoQ but operating profit declined -9.31%, because expenses grew +12.37%. Operating margin therefore fell by 2.44 percentage points QoQ to 11.93%. Year on year, revenue growth was -3.02% while operating profit declined -14.37%.
Higher tax and other income shaped the profit outcome
The tax rate increased by 6.56 percentage points YoY and by 6.31 percentage points QoQ, adding pressure to net profit. Other income represented 21.75% of pre-tax profit, so the earnings result included a material non-operating contribution. Interest expense declined -38.84% QoQ, but that saving was not enough to offset the weaker operating profit and higher tax rate.
Operating margin recorded a third consecutive quarterly decline
Operating margin has fallen for three consecutive quarters, from 15.02% in Q3FY26 to 14.37% in Q4FY26 and 11.93% in Q1FY27. The latest margin was 1.00 percentage point below the 12.93% median among 145 Consumer Discretionary peers that had reported the quarter. This places the quarter below the sector comparison despite the sequential revenue increase.
Results filed after market close
The consolidated results were filed after market close, so there is no post-results market move to assess yet. Across the last eight results reactions, the stock rose five times and fell three times, with a median absolute move of 1.4%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹965 cr | ₹883 cr | +9.26% | -3.02% |
| Other income | ₹26 cr | ₹67 cr | -61.89% | +185.92% |
| Expenses | ₹850 cr | ₹756 cr | +12.37% | -1.25% |
| Operating profit | ₹115 cr | ₹127 cr | -9.31% | -14.37% |
| Operating margin (%) | 11.93% | 14.37% | — | — |
| Interest | ₹3 cr | ₹4 cr | -38.84% | -1.13% |
| Depreciation | ₹20 cr | ₹20 cr | +1.69% | +11.77% |
| Profit before tax | ₹118 cr | ₹170 cr | -30.67% | -3.92% |
| Tax | ₹38 cr | ₹44 cr | -13.75% | +20.64% |
| Net profit | ₹80 cr | ₹126 cr | -36.58% | -12.41% |
| EPS (₹) | ₹17.51 | ₹27.60 | -36.56% | -12.36% |
Operating margin of 11.93% compares with a Consumer Discretionary sector median of 12.93% across 145 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 11.93% after its third consecutive quarterly decline.
- Whether expenses continue to grow faster than revenue after the QoQ gap of +12.37% versus +9.26%.
- Whether other income remains a material contributor after accounting for 21.75% of pre-tax profit.