Kaya narrows loss as operating margin expands 4.48 percentage points
Revenue grew faster than expenses sequentially, but interest and depreciation kept the standalone company in a Rs 12.54 cr loss.
Filed 06 Nov 2026, 13:56 IST · KAYA (KAYA)
Key takeaways
- Standalone operating margin improved 4.48 percentage points sequentially to 10.89% as revenue grew 8.11% while expenses rose 2.95%.
- The standalone net loss narrowed sequentially to Rs -12.54 cr from Rs -15.18 cr, but interest of Rs 9.68 cr and depreciation of Rs 10.88 cr exceeded operating profit of Rs 7.08 cr.
- Other income of Rs 0.94 cr represented -7.50% of pre-tax profit, while the zero tax rate did not change the loss outcome.
Revenue growth outpaced expenses in Q2FY27
Kaya's standalone revenue rose 8.11% sequentially to Rs 65.02 cr, while expenses increased 2.95% to Rs 57.94 cr. That gap lifted operating profit 83.42% to Rs 7.08 cr and expanded operating margin by 4.48 percentage points to 10.89%.
Interest and depreciation still outweighed operating profit
The operating recovery did not cover interest of Rs 9.68 cr and depreciation of Rs 10.88 cr, leaving the company with a pre-tax loss of Rs 12.54 cr. Other income was Rs 0.94 cr and accounted for -7.50% of pre-tax profit, so it did not materially offset the loss. With tax at 0.00%, the net loss remained Rs 12.54 cr and EPS was Rs -8.26.
Sequential margin direction improved, but losses continued
Q2FY27 operating margin of 10.89% was 4.48 percentage points above Q1FY27's 6.41%, marking an improvement in the available quarter-on-quarter trend. Pre-tax loss narrowed 17.39% sequentially, while interest increased 3.64% and depreciation rose 0.37%, leaving both below-operating-line costs as the main constraint on profitability.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹65 cr | ₹60 cr | +8.11% |
| Other income | ₹1 cr | ₹1 cr | -17.54% |
| Expenses | ₹58 cr | ₹56 cr | +2.95% |
| Operating profit | ₹7 cr | ₹4 cr | +83.42% |
| Operating margin (%) | 10.89% | 6.41% | — |
| Interest | ₹10 cr | ₹9 cr | +3.64% |
| Depreciation | ₹11 cr | ₹11 cr | +0.37% |
| Profit before tax | ₹-13 cr | ₹-15 cr | +17.39% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-13 cr | ₹-15 cr | +17.39% |
| EPS (₹) | ₹-8.26 | ₹-9.99 | +17.32% |
What to watch
- Whether operating margin holds above 10.89% in the next quarter.
- Whether interest remains below or above operating profit of Rs 7.08 cr.
- Whether the pre-tax loss improves from Rs 12.54 cr.