Revenue grew 34.24% YoY, but costs cut Patel Retail's margin to 6.10%
Sequential revenue slipped 3.53% and margin eased 0.03 percentage points, while other income rose to 17.79% of pre-tax profit.
Filed 04 Nov 2026, 17:31 IST · after market close · Patel Retail Ltd (PATELRMART)
Key takeaways
- Standalone revenue rose 34.24% YoY, but expenses grew 36.19%, narrowing operating margin by 1.34 percentage points to 6.10%.
- Other income contributed 17.79% of pre-tax profit, while net profit fell 2.27% YoY despite interest expense falling 13.49%.
- Patel Retail's 6.10% operating margin was 5.81 percentage points below the 11.91% median for 223 Consumer Discretionary peers.
Price around the results
Sales growth did not convert into profit growth
Standalone revenue increased 34.24% YoY, but the 36.19% rise in expenses meant operating profit grew only 9.96%. Profit before tax fell 2.29% and net profit declined 2.27%, with depreciation up 54.46% and other income down 21.40% YoY. Sequentially, revenue fell 3.53% and operating profit fell 4.06%.
Margin pressure continued, but only marginally sequentially
Costs grew faster than revenue YoY, reducing operating margin by 1.34 percentage points. On a sequential basis, revenue and expenses declined at nearly the same pace, but expenses still grew faster by the drivers measure, leaving margin down 0.03 percentage points. Operating margin has moved from 7.46% in Q3FY26 to 5.19% in Q4FY26, 6.13% in Q1FY27 and 6.10% in Q2FY27.
Other income remains material to pre-tax profit
Other income accounted for 17.79% of pre-tax profit, so reported earnings were not generated entirely by operations. The tax rate was broadly unchanged YoY at 24.98%, while the sequential tax rate fell 0.79 percentage points; this was not a major YoY support to net profit. Interest expense was flat sequentially at Rs 2.5 cr and down 13.49% YoY.
Margin trails the reported peer median
Among 223 Consumer Discretionary peers that have reported the same quarter, the median operating margin was 11.91%. Patel Retail's 6.10% margin was 5.81 percentage points lower and ranked 50th from the bottom. The results were filed after market close, so there is no immediate market reaction to assess; over the last five results, the stock rose once and fell four times, with a median absolute move of 3.64%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹299 cr | ₹310 cr | -3.53% | +34.24% |
| Other income | ₹2 cr | ₹1 cr | +235.71% | -21.40% |
| Expenses | ₹280 cr | ₹291 cr | -3.50% | +36.19% |
| Operating profit | ₹18 cr | ₹19 cr | -4.06% | +9.96% |
| Operating margin (%) | 6.10% | 6.13% | — | — |
| Interest | ₹3 cr | ₹3 cr | +0.00% | -13.49% |
| Depreciation | ₹5 cr | ₹4 cr | +10.98% | +54.46% |
| Profit before tax | ₹13 cr | ₹13 cr | +3.04% | -2.29% |
| Tax | ₹3 cr | ₹3 cr | +0.00% | -2.37% |
| Net profit | ₹10 cr | ₹10 cr | +4.10% | -2.27% |
| EPS (₹) | ₹2.97 | ₹2.85 | +4.21% | -17.27% |
Operating margin of 6.10% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 6.10% after the decline from 7.46% in Q3FY26.
- Whether expense growth remains below the 34.24% YoY revenue growth rate.
- Whether other income stays below 17.79% of pre-tax profit.