Interest more than doubled as Latteys’ profit fell 31.50% QoQ
Lower revenue was offset at the operating level by faster expense reduction, but a higher tax rate and interest cost cut net profit.
Filed 05 Nov 2026, 19:39 IST · after market close · Latteys Industries Ltd (LATTEYS)
Key takeaways
- Standalone net profit fell 31.50% QoQ as interest expense rose 118.18%.
- Operating margin improved 0.72 percentage points to 6.60% because expenses fell faster than revenue.
- Latteys’ 6.60% operating margin was 4.90 percentage points below the 11.50% median for 178 reporting Industrials peers.
Price around the results
Operating margin improved despite lower revenue
Latteys reported standalone revenue down 8.89% QoQ, while expenses declined 9.59%, allowing operating profit to rise 2.64% and operating margin to improve by 0.72 percentage points. The 6.60% margin remained 4.90 percentage points below the 11.50% median among 178 Industrials companies that had reported.
Higher interest and tax rates outweighed operating gains
Interest expense rose 118.18% QoQ to Rs 0.96 cr, pushing profit before tax down 26.19% even as operating profit increased. The tax rate also rose 5.89 percentage points to 30.26%, contributing to the 31.50% decline in net profit. Other income was only 0.81% of pre-tax profit, so it did not materially support earnings quality.
Q2 margin improved from Q1, but earnings conversion weakened
Compared with Q1FY27, operating margin moved up from 5.88% to 6.60%, but profit before tax and net profit declined because financing costs rose sharply. With only Q1FY27 available in the trend, the quarter shows a sequential margin improvement rather than an established multi-quarter direction.
Results were filed after the market close
These standalone results were filed after market close on 5 November 2026. No post-results market reaction is included, so the stock response cannot yet be compared with its historical reaction pattern.
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 | ₹35 cr | ₹39 cr | -8.89% |
| Other income | ₹0 cr | ₹0 cr | -80.00% |
| Expenses | ₹33 cr | ₹36 cr | -9.59% |
| Operating profit | ₹2 cr | ₹2 cr | +2.64% |
| Operating margin (%) | 6.60% | 5.88% | — |
| Interest | ₹1 cr | ₹0 cr | +118.18% |
| Depreciation | ₹0 cr | ₹0 cr | -33.33% |
| Profit before tax | ₹1 cr | ₹2 cr | -26.19% |
| Tax | ₹0 cr | ₹0 cr | -7.32% |
| Net profit | ₹1 cr | ₹1 cr | -31.50% |
| EPS (₹) | ₹0.15 | ₹0.44 | -65.91% |
Operating margin of 6.60% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 6.60% after the 0.72 percentage-point QoQ improvement.
- Interest expense relative to Rs 0.96 cr after its 118.18% QoQ increase.
- The next tax rate after the rise to 30.26%, up 5.89 percentage points from Q1FY27.