Lloyds Enterprises: costs and interest cut Q2 profit 47.05% sequentially
Revenue rose 23.25% QoQ, but faster expense growth and a 102.92% increase in interest expense sharply reduced operating and net profit.
Filed 05 Nov 2026, 13:16 IST · Lloyds Enterprises Ltd (LLOYDSENT)
Key takeaways
- Consolidated net profit fell 47.05% sequentially even as revenue grew 23.25%.
- Expenses grew 35.6% against 23.25% revenue growth, cutting operating margin by 8.45 percentage points to 7.24%.
- Other income contributed 78.76% of pre-tax profit, making reported earnings less dependent on operations this quarter.
Price around the results
Revenue growth did not translate into profit
Lloyds Enterprises reported consolidated revenue growth of 23.25% from Q1FY27, but operating profit fell 43.15% and net profit declined 47.05%. EPS dropped 47.95% to Rs 0.38, showing that the higher sales base did not offset the increase in costs and financing charges.
Costs and interest drove the margin squeeze
Interest expense rose 102.92% sequentially, while depreciation increased 69.44%, adding pressure below the operating line. Other income accounted for 78.76% of pre-tax profit, so the quarter's earnings quality was heavily supported by non-operating income.
Operating margin trails the Commodities peer median
Among 126 Commodities companies that have reported, Lloyds Enterprises' 7.24% operating margin was 5.61 percentage points below the 12.85% sector median. The margin also fell from 15.69% in Q1FY27, marking a sharp sequential deterioration, although the available comparison does not establish a longer multi-quarter trend.
Shares reversed an early gain after the filing
The stock opened 1.90% higher on the results date but was down 0.89% at the recorded market reaction point. It underperformed the broader market by 3.29%, with trading volume at 0.98 times the reference level.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹694 cr | ₹563 cr | +23.25% |
| Other income | ₹59 cr | ₹56 cr | +4.86% |
| Expenses | ₹644 cr | ₹475 cr | +35.60% |
| Operating profit | ₹50 cr | ₹88 cr | -43.15% |
| Operating margin (%) | 7.24% | 15.69% | — |
| Interest | ₹22 cr | ₹11 cr | +102.92% |
| Depreciation | ₹12 cr | ₹7 cr | +69.44% |
| Profit before tax | ₹74 cr | ₹126 cr | -41.03% |
| Tax | ₹16 cr | ₹16 cr | +0.37% |
| Net profit | ₹58 cr | ₹110 cr | -47.05% |
| EPS (₹) | ₹0.38 | ₹0.73 | -47.95% |
Operating margin of 7.24% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.89% | -3.29% |
Volume on the results session was 0.98× its 20-day average.
What to watch
- Whether operating margin recovers from 7.24% after the 8.45-percentage-point sequential decline.
- Whether expense growth slows from 35.6% to below revenue growth of 23.25%.
- Whether interest expense growth eases from 102.92% sequentially and other income's 78.76% share of pre-tax profit declines.