Nandan Denim's Q2 profit falls 22.50% as tax benefit shrinks
Revenue slipped 2.32% QoQ, while a less negative tax rate and higher interest reduced reported profit.
Filed 02 Nov 2026, 16:38 IST · after market close · Nandan Denim Ltd (NDL)
Key takeaways
- Nandan Denim's standalone Q2FY27 net profit fell 22.50% QoQ to Rs 11.47 cr as the tax benefit narrowed.
- Operating margin improved 0.08 percentage points QoQ to 4.00% because expenses fell 2.40%, slightly faster than revenue at -2.32%.
- The 4.00% operating margin was 8.74 percentage points below the 12.74% median for 153 reporting Consumer Discretionary peers.
Price around the results
Q2 profit declined despite broadly stable operating profit
Nandan Denim reported standalone revenue of Rs 607.98 cr in Q2FY27, down 2.32% QoQ, while operating profit fell only 0.21% to Rs 24.33 cr. Profit before tax declined 7.36% to Rs 9.56 cr, as interest expense rose 4.53% to Rs 5.08 cr. Net profit fell 22.50% to Rs 11.47 cr because the tax benefit was smaller than in Q1FY27.
Margin edged up, but tax benefit supported reported profit
Operating margin increased 0.08 percentage points to 4.00% because expenses declined 2.40%, slightly faster than revenue. The tax rate became 23.41 percentage points less negative, moving to -20.03% from -43.44%, which reduced the tax benefit and weighed on net profit. Other income accounted for 20.82% of profit before tax, so reported earnings also included a meaningful non-operating contribution.
Margin remains below the Consumer Discretionary peer median
Nandan Denim's 4.00% operating margin was 8.74 percentage points below the 12.74% median among 153 Consumer Discretionary peers that had reported the quarter. The results were filed after market close, so there is no immediate market reaction to assess.
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 | ₹608 cr | ₹622 cr | -2.32% |
| Other income | ₹2 cr | ₹2 cr | -18.11% |
| Expenses | ₹584 cr | ₹598 cr | -2.40% |
| Operating profit | ₹24 cr | ₹24 cr | -0.21% |
| Operating margin (%) | 4.00% | 3.92% | — |
| Interest | ₹5 cr | ₹5 cr | +4.53% |
| Depreciation | ₹12 cr | ₹12 cr | +0.43% |
| Profit before tax | ₹10 cr | ₹10 cr | -7.36% |
| Tax | ₹-2 cr | ₹-4 cr | +57.37% |
| Net profit | ₹11 cr | ₹15 cr | -22.50% |
| EPS (₹) | ₹0.08 | ₹0.10 | -20.00% |
Operating margin of 4.00% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 4.00% in the next quarter.
- Whether the tax rate remains near -20.03% rather than returning to the Q1FY27 level of -43.44%.
- Whether interest expense moves below Rs 5.08 cr.