Revenue grew 23.89% QoQ, but margin edged lower
Lower interest and tax rates lifted profit, while other income made up 72.45% of pre-tax profit.
Filed 05 Nov 2026, 19:30 IST · after market close · Mahalaxmi Fabric Mills Ltd (MFML)
Key takeaways
- Consolidated revenue rose +23.89% QoQ to Rs 38.17 cr, but operating margin narrowed 0.09 percentage points as expenses grew +24.01%.
- Net profit increased to Rs 1.75 cr from Rs 0.04 cr QoQ, but other income contributed 72.45% of pre-tax profit.
- Operating margin at 8.67% was 2.89 percentage points below the 11.56% median for 262 Consumer Discretionary peers.
Price around the results
Revenue growth outpaced operating profit
Mahalaxmi Fabric Mills reported consolidated revenue growth of +23.89% QoQ, while operating profit rose +22.59% to Rs 3.31 cr. Net profit increased to Rs 1.75 cr from Rs 0.04 cr in Q1FY27, helped by the operating improvement and lower interest. The results were filed after market close on 05 Nov 2026 at 19:30 IST.
Costs kept the margin under pressure
Expenses grew +24.01% QoQ, slightly faster than revenue, so operating margin narrowed 0.09 percentage points to 8.67%. Interest expense fell +20.86%, while the tax rate declined 13.17 percentage points to 10.76%, both supporting reported profit. Other income accounted for 72.45% of pre-tax profit, making earnings quality an important consideration.
Margin recovery paused below the peer median
Operating margin improved from -6.48% in Q4FY25 to 8.76% in Q1FY27, but eased to 8.67% in Q2FY27. The company was 2.89 percentage points below the 11.56% median operating margin among 262 Consumer Discretionary peers that had reported. No market reaction is included because the results were filed after market close.
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 | ₹38 cr | ₹31 cr | +23.89% |
| Other income | ₹1 cr | ₹0 cr | +305.71% |
| Expenses | ₹35 cr | ₹28 cr | +24.01% |
| Operating profit | ₹3 cr | ₹3 cr | +22.59% |
| Operating margin (%) | 8.67% | 8.76% | — |
| Interest | ₹1 cr | ₹1 cr | -20.86% |
| Depreciation | ₹2 cr | ₹2 cr | +3.73% |
| Profit before tax | ₹2 cr | ₹0 cr | +3820.00% |
| Tax | ₹0 cr | ₹0 cr | +2000.00% |
| Net profit | ₹2 cr | ₹0 cr | +4275.00% |
| EPS (₹) | ₹1.65 | ₹0.04 | +4025.00% |
Operating margin of 8.67% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.43% | +7.42% |
| Next session | +14.59% | — |
Volume on the results session was 5.28× its 20-day average.
What to watch
- Whether operating margin holds above 8.67% after the 0.09 percentage-point QoQ decline.
- Whether expenses grow slower than revenue after +24.01% versus +23.89% QoQ.
- Whether other income contributes less than 72.45% of pre-tax profit.