Revenue rebounded, but Le Merite’s margin gap remained wide
QoQ operating recovery was offset by 52.94% higher interest and a tax credit that drove net profit above pre-tax profit.
Filed 05 Nov 2026, 18:28 IST · after market close · Le Merite Exports Ltd (LEMERITE)
Key takeaways
- Revenue increased +21.38% QoQ while expenses rose +7.99%, lifting operating margin by 12.20 percentage points to 1.53%.
- Net profit of Rs 0.93 cr was flattered by a -139.74% tax rate, while other income contributed 338.46% of pre-tax profit.
- At 1.53%, operating margin was 10.03 percentage points below the 11.56% median of 262 Consumer Discretionary peers.
Price around the results
Revenue recovered, but operations stayed thin
On a consolidated basis, revenue grew +21.38% QoQ to Rs 108.94 cr, while expenses grew only +7.99% to Rs 107.27 cr. That operating leverage moved the company from a Rs -9.58 cr operating loss to Rs 1.67 cr of operating profit and expanded operating margin by 12.20 percentage points to 1.53%. The quarter marked a return to operating profit, but not to a high-margin profile.
Tax credit and other income shaped reported profit
Interest expense rose +52.94% QoQ to Rs 2.34 cr, exceeding operating profit of Rs 1.67 cr and limiting the conversion of operating gains into pre-tax profit. Other income of Rs 1.32 cr represented 338.46% of pre-tax profit. A Rs -0.54 cr tax charge, or tax credit, produced a -139.74% tax rate and lifted net profit to Rs 0.93 cr despite pre-tax profit of Rs 0.39 cr.
Margin improved from Q1 but stayed below peers
The operating margin improved from -10.67% in Q1FY27 to 1.53% in Q2FY27. Among 262 Consumer Discretionary peers that reported the same quarter, the sector median was 11.56%, leaving Le Merite's margin 10.03 percentage points lower and placing it 31st from the bottom.
Results were filed after market close
Le Merite Exports filed its consolidated Q2FY27 results at 18:28 IST on 5 November 2026, after market close. The stock's response therefore cannot yet be assessed.
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 | ₹109 cr | ₹90 cr | +21.38% |
| Other income | ₹1 cr | ₹6 cr | -77.82% |
| Expenses | ₹107 cr | ₹99 cr | +7.99% |
| Operating profit | ₹2 cr | ₹-10 cr | — |
| Operating margin (%) | 1.53% | -10.67% | — |
| Interest | ₹2 cr | ₹2 cr | +52.94% |
| Depreciation | ₹0 cr | ₹0 cr | +3.85% |
| Profit before tax | ₹0 cr | ₹-5 cr | — |
| Tax | ₹-1 cr | ₹-1 cr | +35.71% |
| Net profit | ₹1 cr | ₹-5 cr | — |
| EPS (₹) | ₹0.07 | ₹0.36 | -80.56% |
Operating margin of 1.53% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 1.53% after the Q2FY27 recovery from -10.67%.
- Whether interest expense reverses the +52.94% QoQ increase to Rs 2.34 cr.
- Whether reported profit remains supported by a -139.74% tax rate and other income's 338.46% share of pre-tax profit.