Kwality Walls swings back to Q2 loss as margin drops 6.68 points
Revenue fell 47.22% QoQ while expenses fell 43.22%, leaving operating profit below depreciation and pushing profit before tax to a Rs 25.2 cr loss.
Filed 06 Nov 2026, 18:59 IST · after market close · Kwality Walls India Ltd (KWIL)
Key takeaways
- Revenue fell -47.22% sequentially while expenses fell only -43.22%, narrowing operating margin by 6.68 percentage points to 5.09%.
- The company reported a Rs -17.2 cr net loss as Rs 40.9 cr of depreciation and Rs 10.8 cr of interest more than offset operating profit.
- Operating margin remained 5.60 percentage points below the 10.69% median of 64 FMCG peers that had reported the quarter.
Price around the results
Q2 revenue reset erased the prior-quarter profit
This standalone quarter reversed the Rs 50.7 cr net profit reported in Q1FY27, with net profit moving to a Rs -17.2 cr loss and EPS to Rs -0.07. Revenue fell -47.22% sequentially to Rs 463.6 cr, while other income declined -80.67% to Rs 2.9 cr. The decline in other income was not a major support to profit: it represented -11.51% of pre-tax profit because pre-tax profit was negative.
Costs fell less than revenue and compressed margins
Expenses declined -43.22%, less than the -47.22% fall in revenue, so operating margin narrowed by 6.68 percentage points to 5.09%. Operating profit fell -77.18% to Rs 23.6 cr, while interest rose 3.85% to Rs 10.8 cr and depreciation increased 1.49% to Rs 40.9 cr. The 31.75% tax rate was 6.64 percentage points higher than in Q1, adding to the pressure on reported earnings.
Margin recovery from Q3 was interrupted in Q2
Operating margin had improved from -28.77% in Q3FY26 to -16.14% in Q4FY26 and 11.77% in Q1FY27, before falling back to 5.09% in Q2FY27. The company’s margin was 5.60 percentage points below the 10.69% median for the 64 FMCG peers that had reported the same quarter. Its margin ranked 15th from the bottom in that peer set.
No immediate market reaction yet
The results were filed after market close, so there was no market reaction to report yet. Across the three latest result reactions, the stock rose once and fell twice, with a median absolute move of 2.96%; the recorded moves were +7.78%, -2.96% and -2.89%.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹464 cr | ₹878 cr | -47.22% |
| Other income | ₹3 cr | ₹15 cr | -80.67% |
| Expenses | ₹440 cr | ₹775 cr | -43.22% |
| Operating profit | ₹24 cr | ₹103 cr | -77.18% |
| Operating margin (%) | 5.09% | 11.77% | — |
| Interest | ₹11 cr | ₹10 cr | +3.85% |
| Depreciation | ₹41 cr | ₹40 cr | +1.49% |
| Profit before tax | ₹-25 cr | ₹68 cr | — |
| Tax | ₹-8 cr | ₹17 cr | — |
| Net profit | ₹-17 cr | ₹51 cr | — |
| EPS (₹) | ₹-0.07 | ₹0.22 | — |
Operating margin of 5.09% compares with a Fast Moving Consumer Goods sector median of 10.69% across 64 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 463.6 cr toward the Q1FY27 level of Rs 878.3 cr.
- Whether operating margin improves from 5.09% after the 6.68-percentage-point sequential decline.
- Whether the tax rate moves below 31.75% while depreciation remains near Rs 40.9 cr.