Nitco narrows operating loss as revenue grows faster than expenses
Consolidated operating margin improved 4.76 percentage points QoQ but remained below the 12.23% median for 188 Consumer Discretionary peers.
Filed 03 Nov 2026, 14:23 IST · Nitco Ltd (NITCO)
Key takeaways
- Consolidated revenue grew 34.27% QoQ, faster than expenses at 28.30%, narrowing the operating loss to Rs 3.59 cr.
- Operating margin improved 4.76 percentage points QoQ to -2.31%, but remained 14.54 percentage points below the sector median.
- Net loss narrowed 40.27% QoQ to Rs 6.17 cr, while other income of Rs 2.25 cr represented -36.47% of pre-tax profit.
Price around the results
Revenue growth reduced the operating loss
Nitco's consolidated revenue rose 34.27% QoQ, while expenses increased 28.30%, allowing the operating loss to narrow to Rs 3.59 cr from Rs 8.20 cr. Operating margin consequently improved from -7.07% to -2.31%, a 4.76 percentage-point gain. The improvement was operational rather than tax-led, as the tax rate was unchanged at -0.02%.
Profit remains below the operating break-even level
The company still reported a consolidated pre-tax loss of Rs 6.17 cr after Rs 2.61 cr of interest and Rs 2.22 cr of depreciation. Other income of Rs 2.25 cr partly offset the loss, but its share of pre-tax profit was -36.47% because pre-tax profit remained negative. Net loss therefore stayed at Rs 6.17 cr, with EPS at negative Rs 0.24.
Margin trails most reported sector peers
Nitco's -2.31% operating margin was 14.54 percentage points below the 12.23% median among 188 reported Consumer Discretionary peers. The company ranked 15th from the bottom on this measure. Sequentially, this was an improvement from Q1FY27, but the available trend shows only one prior quarter and does not establish a longer margin direction.
Initial market response was modestly positive
The stock was up 0.47% on the recorded reaction day, while its relative return was -1.11%. Trading volume was 3.02 times the reference level. The reported move came alongside a quarter in which the operating loss narrowed, but the company remained below operating break-even.
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 | ₹156 cr | ₹116 cr | +34.27% |
| Other income | ₹2 cr | ₹2 cr | -9.64% |
| Expenses | ₹159 cr | ₹124 cr | +28.30% |
| Operating profit | ₹-4 cr | ₹-8 cr | +56.22% |
| Operating margin (%) | -2.31% | -7.07% | — |
| Interest | ₹3 cr | ₹2 cr | +4.82% |
| Depreciation | ₹2 cr | ₹2 cr | +4.23% |
| Profit before tax | ₹-6 cr | ₹-10 cr | +40.27% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-6 cr | ₹-10 cr | +40.27% |
| EPS (₹) | ₹-0.24 | ₹-0.43 | +44.19% |
Operating margin of -2.31% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.47% | -1.11% |
Volume on the results session was 3.02× its 20-day average.
What to watch
- Whether operating margin improves further from -2.31% in the next quarter.
- Whether revenue growth remains ahead of expense growth after the current +34.27% versus +28.30% QoQ spread.
- Whether interest stays near Rs 2.61 cr as the company works toward reducing its Rs 6.17 cr consolidated net loss.