Lux Industries grows revenue, but faster costs cut operating margin
Consolidated revenue rose +17.97% QoQ, while operating margin fell 0.60 percentage points and net profit grew just +3.68%.
Filed 03 Nov 2026, 14:28 IST · Lux Industries Ltd (LUXIND)
Key takeaways
- Consolidated revenue rose +17.97% QoQ, but expenses grew faster at +18.73%, reducing operating margin by 0.60 percentage points.
- Net profit increased only +3.68% QoQ to Rs 23.95 cr as other income contributed 16.48% of profit before tax.
- Operating margin at 6.42% was 5.86 percentage points below the 12.28% median for 164 reported Consumer Discretionary peers.
Price around the results
Revenue momentum did not flow through to margins
Lux Industries’ consolidated revenue increased +17.97% QoQ to Rs 718.47 cr, while operating profit rose only +7.95% to Rs 46.16 cr. Expenses grew faster than revenue at +18.73%, which reduced operating margin from 7.02% to 6.42%. This is a sequential margin decline, although the available trend covers only Q1FY27 and Q2FY27.
Other income and tax supported reported profit
Net profit grew +3.68% QoQ, well below the pace of revenue growth, as the higher operating profit was partly offset by lower other income. Other income accounted for 16.48% of profit before tax, making reported profit less dependent on operations than the revenue growth alone suggests. The tax rate also rose 0.54 percentage points to 24.23%, while interest expense declined -0.95%.
Operating margin trails the sector median
The company’s 6.42% operating margin was 5.86 percentage points below the 12.28% median among 164 Consumer Discretionary peers that had reported the quarter. That places Lux Industries near the lower end of the comparison, with 36 companies ranked below it. The key contrast is between solid sequential revenue growth and the faster increase in expenses.
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 | ₹718 cr | ₹609 cr | +17.97% |
| Other income | ₹5 cr | ₹7 cr | -30.25% |
| Expenses | ₹672 cr | ₹566 cr | +18.73% |
| Operating profit | ₹46 cr | ₹43 cr | +7.95% |
| Operating margin (%) | 6.42% | 7.02% | — |
| Interest | ₹11 cr | ₹12 cr | -0.95% |
| Depreciation | ₹8 cr | ₹8 cr | -1.07% |
| Profit before tax | ₹32 cr | ₹30 cr | +4.43% |
| Tax | ₹8 cr | ₹7 cr | +6.83% |
| Net profit | ₹24 cr | ₹23 cr | +3.68% |
| EPS (₹) | ₹7.94 | ₹7.36 | +7.88% |
Operating margin of 6.42% compares with a Consumer Discretionary sector median of 12.28% across 164 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 6.42% after the 0.60-percentage-point QoQ decline.
- Whether expense growth falls below the +17.97% QoQ revenue growth rate.
- Whether other income remains a material contributor after accounting for 16.48% of profit before tax.