Liberty Shoes profit more than doubles despite a margin dip
Lower taxes drove the profit increase, while faster expense growth kept operating margin below the sector peer median.
Filed 12 Nov 2026, 15:54 IST · after market close · Liberty Shoes Ltd (LIBERTSHOE)
Key takeaways
- Standalone revenue rose 12.13% QoQ, but expenses grew faster at 12.56%, trimming operating margin by 0.35 percentage points.
- Net profit rose 108.82% QoQ as the tax rate fell 15.11 percentage points to 24.91%, despite other income contributing -8.99% of pre-tax profit.
- Operating margin at 7.60% was 3.63 percentage points below the 11.23% median for 329 reported Consumer Discretionary peers.
Price around the results
Q2 revenue momentum came with faster cost growth
Liberty Shoes reported standalone revenue growth of 12.13% QoQ, but expenses increased 12.56%, so operating margin narrowed by 0.35 percentage points. Operating profit grew 7.26%, lagging revenue growth because costs absorbed more of the additional sales.
Lower taxes amplified the profit increase
Net profit increased 108.82% QoQ, well ahead of the 65.79% rise in profit before tax, as the tax rate fell to 24.91% from 40.02%. Interest rose 1.65% and depreciation increased 1.38%, adding pressure below operating profit. Other income was negative and accounted for -8.99% of pre-tax profit, so it did not support earnings quality.
Margin remains below the Consumer Discretionary median
Operating margin declined from 7.95% in Q1FY27 to 7.60% in Q2FY27, marking a second consecutive quarter in the available trend with a lower margin. The company was 3.63 percentage points below the 11.23% median operating margin across 329 Consumer Discretionary peers that had reported.
Results were filed after market close
The results were filed after market close, so there is no post-results price reaction to assess yet.
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 | ₹190 cr | ₹170 cr | +12.13% |
| Other income | ₹-0 cr | ₹-0 cr | -41.67% |
| Expenses | ₹176 cr | ₹156 cr | +12.56% |
| Operating profit | ₹14 cr | ₹14 cr | +7.26% |
| Operating margin (%) | 7.60% | 7.95% | — |
| Interest | ₹4 cr | ₹4 cr | +1.65% |
| Depreciation | ₹8 cr | ₹8 cr | +1.38% |
| Profit before tax | ₹2 cr | ₹1 cr | +65.79% |
| Tax | ₹0 cr | ₹0 cr | +2.17% |
| Net profit | ₹1 cr | ₹1 cr | +108.82% |
| EPS (₹) | ₹0.83 | ₹0.40 | +107.50% |
Operating margin of 7.60% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.60% after the 0.35-percentage-point QoQ decline.
- Whether expense growth falls below revenue growth after 12.56% versus 12.13% in Q2FY27.
- Whether the tax rate remains near 24.91% rather than the 40.02% recorded in Q1FY27.