Costs outpaced revenue growth as Lorenzini's margin fell to 4.58%
Standalone revenue rose +62.19% QoQ, but faster expense growth, negative other income and a tax charge pushed the company into a Rs 0.61 cr loss.
Filed 12 Nov 2026, 18:31 IST · after market close · Lorenzini Apparels Ltd (LAL)
Key takeaways
- Standalone revenue rose +62.19% QoQ, but expenses grew +72.43%, cutting operating margin by 5.66 percentage points to 4.58%.
- A -Rs 1.05 cr other-income line and a Rs 0.12 cr tax charge left the company with a Rs 0.61 cr net loss despite interest falling -14.00%.
- Operating margin declined for a third straight quarter, from 16.09% in Q4FY26 to 4.58% in Q2FY27.
Price around the results
Revenue growth did not translate into operating profit
Lorenzini's standalone revenue increased +62.19% QoQ, but expenses rose faster at +72.43%. That cost mismatch reduced operating profit by -27.49% and narrowed operating margin by 5.66 percentage points to 4.58%.
Non-operating losses and tax added to the pressure
Other income was -Rs 1.05 cr, and its 214.29% share of reported pre-tax profit reflects how the non-operating loss amplified the Rs 0.49 cr pre-tax loss. The tax rate fell 52.87 percentage points to -25.17%, but the Rs 0.12 cr tax charge still added to the loss. Interest declined -14.00% QoQ, which was not enough to offset the operating and other-income drag.
Margin is below peers after three consecutive quarterly declines
Operating margin has fallen from 16.09% in Q4FY26 to 10.24% in Q1FY27 and 4.58% in Q2FY27. The latest margin was 6.65 percentage points below the 11.23% median for 329 Consumer Discretionary peers that had reported the quarter, placing Lorenzini 64th from the bottom. The standalone results were filed after market close on 12 Nov 2026, so there is no post-result stock reaction to assess.
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 | ₹27 cr | ₹17 cr | +62.19% |
| Other income | ₹-1 cr | ₹2 cr | — |
| Expenses | ₹26 cr | ₹15 cr | +72.43% |
| Operating profit | ₹1 cr | ₹2 cr | -27.49% |
| Operating margin (%) | 4.58% | 10.24% | — |
| Interest | ₹0 cr | ₹1 cr | -14.00% |
| Depreciation | ₹0 cr | ₹0 cr | -11.11% |
| Profit before tax | ₹-0 cr | ₹3 cr | — |
| Tax | ₹0 cr | ₹1 cr | -85.54% |
| Net profit | ₹-1 cr | ₹2 cr | — |
| EPS (₹) | ₹-0.04 | ₹0.13 | — |
Operating margin of 4.58% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether expenses grow slower than the +62.19% QoQ revenue pace.
- Whether operating margin recovers from 4.58% after three consecutive quarterly declines.
- Whether other income turns positive from -Rs 1.05 cr and the tax charge reverses from Rs 0.12 cr.