Revenue fell 13.44% sequentially, but Khaitan's margin widened
Expenses fell faster than revenue, while a negative 1.4% tax rate supported reported profit.
Filed 02 Nov 2026, 18:25 IST · after market close · Khaitan (India) Ltd (KHAITANLTD)
Key takeaways
- Consolidated revenue fell 13.44% sequentially, but operating margin widened by 0.69 percentage points to 7.13%.
- Expenses declined 14.10%, faster than revenue, limiting the operating-profit decline to 4.12%.
- A negative 1.4% tax rate supported reported net profit, while other income contributed 6.38% of pre-tax profit.
Price around the results
Lower revenue, better operating conversion
Khaitan (India)'s consolidated revenue contracted 13.44% sequentially, while operating profit declined a smaller 4.12%. Expenses fell 14.10%, faster than revenue, which lifted operating margin by 0.69 percentage points.
Tax credit supported reported profit
Net profit declined 2.46% sequentially, less than the fall in operating profit, helped by a 9.68% reduction in interest expense. Other income accounted for 6.38% of pre-tax profit, so it was not the main earnings driver, but the negative 1.4% tax rate supported reported net profit.
Margin trails the consumer discretionary peer median
Khaitan's 7.13% operating margin was 5.37 percentage points below the 12.5% median for 155 Consumer Discretionary companies that had reported, placing it 40th from the bottom. The results were filed after market close on 02 Nov 2026, so the stock's market reaction is not covered here.
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 | ₹36 cr | ₹41 cr | -13.44% |
| Other income | ₹0 cr | ₹0 cr | +15.38% |
| Expenses | ₹33 cr | ₹39 cr | -14.10% |
| Operating profit | ₹3 cr | ₹3 cr | -4.12% |
| Operating margin (%) | 7.13% | 6.44% | — |
| Interest | ₹0 cr | ₹0 cr | -9.68% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹2 cr | ₹2 cr | -2.08% |
| Tax | ₹-0 cr | ₹-0 cr | +0.00% |
| Net profit | ₹2 cr | ₹2 cr | -2.46% |
| EPS (₹) | ₹5.01 | ₹5.13 | -2.34% |
Operating margin of 7.13% compares with a Consumer Discretionary sector median of 12.50% across 155 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 35.88 cr in the next reported quarter.
- Whether operating margin remains above 7.13%.
- Whether the tax rate moves away from -1.4% and other income stays near its 6.38% share of pre-tax profit.