PC Jeweller's Q2 margin rose as revenue outpaced costs
Revenue growth exceeded expense growth, while lower interest and a negative tax charge helped net profit grow faster than pre-tax profit.
Filed 21 Oct 2026, 18:11 IST · after market close · PC Jeweller Ltd (PCJEWELLER)
Key takeaways
- Consolidated revenue grew 20.23% QoQ, faster than expenses at 17.21%, lifting operating margin by 1.82 percentage points.
- Net profit rose 49.03% QoQ, helped by a lower tax rate and a 35.43% fall in interest costs.
- Operating margin of 29.36% was 17.12 percentage points above the 12.24% median for 34 reported Consumer Discretionary peers.
Price around the results
Revenue momentum accelerated in Q2FY27
Consolidated revenue rose 20.23% QoQ to Rs 1,054.47 cr, while operating profit increased 28.18% to Rs 309.62 cr. The faster growth in operating profit reflects operating leverage, with expenses rising 17.21% rather than keeping pace with revenue. Net profit grew 49.03% to Rs 330.66 cr.
Lower costs and interest supported the margin gain
Operating margin widened to 29.36%, a 1.82 percentage-point improvement from Q1FY27, because revenue growth exceeded expense growth. Interest costs fell 35.43% QoQ, adding support below the operating line. Other income accounted for 10.76% of pre-tax profit, while the tax rate moved down 1.32 percentage points to -0.02%, so the net-profit increase was not entirely operational.
Margin remained well above the sector comparison
The quarter marked an improvement from the previous quarter's 27.54% operating margin; the available trend shows one sequential comparison rather than a longer run of quarters. PC Jeweller's 29.36% margin was 17.12 percentage points above the 12.24% median among 34 Consumer Discretionary peers that had reported.
The stock fell after the results
The shares declined 2.76% on the reaction date, with a 3.01 times volume ratio and an 8.00% opening gap. The results were filed after market close, so the next-session move captures the initial market response.
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 | ₹1,054 cr | ₹877 cr | +20.23% |
| Other income | ₹36 cr | ₹2 cr | +1494.62% |
| Expenses | ₹745 cr | ₹635 cr | +17.21% |
| Operating profit | ₹310 cr | ₹242 cr | +28.18% |
| Operating margin (%) | 29.36% | 27.54% | — |
| Interest | ₹9 cr | ₹14 cr | -35.43% |
| Depreciation | ₹6 cr | ₹5 cr | +6.96% |
| Profit before tax | ₹331 cr | ₹225 cr | +47.06% |
| Tax | ₹-0 cr | ₹3 cr | — |
| Net profit | ₹331 cr | ₹222 cr | +49.03% |
| EPS (₹) | ₹0.34 | ₹0.23 | +47.83% |
Operating margin of 29.36% compares with a Consumer Discretionary sector median of 12.24% across 34 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.76% | -2.21% |
Volume on the results session was 3.01× its 20-day average.
What to watch
- Whether operating margin holds above 29.36% after the 1.82 percentage-point QoQ improvement.
- Whether revenue growth remains ahead of the 17.21% QoQ expense growth rate.
- Whether other income stays below its 10.76% share of pre-tax profit and the tax rate moves above -0.02%.