Nila Spaces' margin rises despite 18.19% sequential revenue drop
Expenses fell 21.80% sequentially, but higher interest and other income's 49.69% share of pre-tax profit shaped earnings quality.
Filed 30 Oct 2026, 17:07 IST · after market close · Nila Spaces Ltd (NILASPACES)
Key takeaways
- Consolidated revenue fell 18.19% sequentially, while net profit declined 31.51% to EPS of Rs 0.15.
- Operating margin expanded 2.70 percentage points to 41.37% because expenses fell faster than revenue, but interest costs rose 22.74%.
- Other income contributed 49.69% of pre-tax profit, making reported earnings materially reliant on non-operating income.
Price around the results
Revenue contraction outweighed operating profit resilience
Nila Spaces reported consolidated results for Q2FY27, with revenue down 18.19% sequentially and operating profit down 12.52%. Net profit fell faster, by 31.51%, as the higher operating margin did not offset increased interest costs and the lower operating base. EPS declined 28.57% to Rs 0.15.
Lower expenses lifted margin, but financing costs rose
Expenses declined 21.80%, faster than the 18.19% revenue fall, widening operating margin by 2.70 percentage points to 41.37%. Interest expense rose 22.74%, which pushed pre-tax profit down 29.13% despite the operating-margin improvement. The tax rate also increased 2.47 percentage points to 27.70%.
Operating margin was well above the reported peer median
Nila Spaces' 41.37% operating margin was 28.28 percentage points above the 13.09% median for 129 Consumer Discretionary peers that had reported the quarter. The sequential comparison shows margin improvement from 38.67%, but profit momentum weakened as interest costs increased.
Other income was a major part of pre-tax profit
Other income rose 25.39% sequentially and accounted for 49.69% of pre-tax profit. That makes the quarter's earnings less representative of operating performance than the 41.37% operating margin alone suggests. The results were filed after market close, so there is no post-filing share-price response to assess here.
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 | ₹47 cr | -18.19% |
| Other income | ₹4 cr | ₹3 cr | +25.39% |
| Expenses | ₹22 cr | ₹29 cr | -21.80% |
| Operating profit | ₹16 cr | ₹18 cr | -12.52% |
| Operating margin (%) | 41.37% | 38.67% | — |
| Interest | ₹10 cr | ₹8 cr | +22.74% |
| Depreciation | ₹2 cr | ₹1 cr | +2.04% |
| Profit before tax | ₹8 cr | ₹12 cr | -29.13% |
| Tax | ₹2 cr | ₹3 cr | -22.07% |
| Net profit | ₹6 cr | ₹9 cr | -31.51% |
| EPS (₹) | ₹0.15 | ₹0.21 | -28.57% |
Operating margin of 41.37% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from the 18.19% sequential decline.
- Whether operating margin holds above 41.37% after the quarter's expense reduction.
- Whether interest expense moderates from the 22.74% sequential increase and other income falls below 49.69% of pre-tax profit.