Kriti Industries swings to operating loss as revenue drops -36.27% QoQ
Costs declined less than revenue, cutting operating margin by 5.58 percentage points; a Rs 2.53 cr tax credit softened the net loss.
Filed 05 Nov 2026, 12:24 IST · Kriti Industries (India) Ltd (KRITI)
Key takeaways
- Consolidated revenue declined by -36.27% QoQ to Rs 110.32 cr, turning Q1FY27 operating profit of Rs 5.32 cr into a Rs 2.75 cr loss.
- Expenses fell by -32.61%, slower than revenue, driving a 5.58 percentage-point decline in operating margin to -2.50%.
- Kriti's -2.50% operating margin was 13.98 percentage points below the 11.48% median for 180 Industrials peers that had reported.
Price around the results
Revenue contraction reversed Q1's operating profit
On a consolidated basis, revenue declined by -36.27% QoQ to Rs 110.32 cr from Rs 173.11 cr, while operating profit of Rs 5.32 cr turned into a Rs 2.75 cr loss. The net loss widened to Rs 7.38 cr from Rs 2.21 cr, and EPS moved to -Rs 1.40 from -Rs 0.42.
Slower cost decline drove the margin fall
Expenses declined by -32.61%, less than the revenue decline, so operating margin fell by 5.58 percentage points to -2.50%. Interest expense also declined by -29.40% to Rs 2.69 cr, but this did not offset the operating loss and Rs 4.62 cr of depreciation. Other income was Rs 0.15 cr, equal to -1.51% of pre-tax profit, so it did not materially support earnings. The Rs 2.53 cr tax credit reduced the reported net loss, while the tax rate rose by 1.11 percentage points to 25.53%.
Margin ranked near the bottom of Industrials peers
The quarter-on-quarter trend shows a sharp reversal from Q1FY27's 3.08% operating margin to -2.50% in Q2FY27. Kriti's margin was 13.98 percentage points below the 11.48% median among 180 Industrials peers that had reported, placing it sixth from the bottom.
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 | ₹110 cr | ₹173 cr | -36.27% |
| Other income | ₹0 cr | ₹0 cr | -50.00% |
| Expenses | ₹113 cr | ₹168 cr | -32.61% |
| Operating profit | ₹-3 cr | ₹5 cr | — |
| Operating margin (%) | -2.50% | 3.08% | — |
| Interest | ₹3 cr | ₹4 cr | -29.40% |
| Depreciation | ₹5 cr | ₹5 cr | -2.53% |
| Profit before tax | ₹-10 cr | ₹-3 cr | -238.23% |
| Tax | ₹-3 cr | ₹-1 cr | -256.34% |
| Net profit | ₹-7 cr | ₹-2 cr | -233.94% |
| EPS (₹) | ₹-1.40 | ₹-0.42 | -233.33% |
Operating margin of -2.50% compares with a Industrials sector median of 11.48% across 180 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 110.32 cr after the -36.27% QoQ decline.
- Whether operating margin moves back above the Q1FY27 level of 3.08%.
- Whether expenses fall faster than the -32.61% recorded in Q2FY27.