PGIL margin more than halves as revenue falls 9.20% sequentially
Costs fell only 5.20%, while other income covered 144.01% of pre-tax profit and the tax rate turned negative.
Filed 05 Nov 2026, 19:40 IST · after market close · Pearl Global Industries Ltd (PGIL)
Key takeaways
- Standalone operating margin fell 4.11 percentage points sequentially to 2.42% as revenue declined 9.20% and expenses fell only 5.20%.
- Net profit rose 29.66% sequentially to Rs 16.13 cr, but other income accounted for 144.01% of pre-tax profit and the tax rate was -0.53%.
- PGIL's 2.42% operating margin was 9.16 percentage points below the 11.58% median for 251 Consumer Discretionary peers.
Price around the results
Revenue slipped, but operating profit fell faster
These standalone results show revenue down 9.20% sequentially to Rs 308.37 cr, while operating profit fell 66.37% to Rs 7.46 cr. Expenses declined 5.20%, so they fell more slowly than revenue and operating margin narrowed by 4.11 percentage points to 2.42%. This was a sequential deterioration from Q1FY27, when operating margin was 6.53%.
PGIL's margin lagged 251 sector peers
PGIL's 2.42% operating margin was 9.16 percentage points below the 11.58% median among 251 Consumer Discretionary companies that had reported. The company ranked 34th from the bottom on this measure, placing its margin near the weaker end of the reported peer set.
Other income and tax change drove reported profit
Profit before tax declined 7.39% sequentially even as net profit increased 29.66% to Rs 16.13 cr. Other income rose 144.44% to Rs 23.10 cr and represented 144.01% of pre-tax profit, making it a major contributor to reported earnings. The tax rate fell 28.69 percentage points from 28.16% to -0.53%, while interest expense increased 2.44%; EPS nevertheless declined 34.94% to Rs 1.75.
Results were filed after market close
PGIL filed these standalone Q2FY27 results after market close on 05 Nov 2026 at 19:40 IST. The sequential figures show net profit improvement despite weaker operating performance, largely because of other income and the tax-rate change.
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 | ₹308 cr | ₹340 cr | -9.20% |
| Other income | ₹23 cr | ₹9 cr | +144.44% |
| Expenses | ₹301 cr | ₹317 cr | -5.20% |
| Operating profit | ₹7 cr | ₹22 cr | -66.37% |
| Operating margin (%) | 2.42% | 6.53% | — |
| Interest | ₹8 cr | ₹7 cr | +2.44% |
| Depreciation | ₹7 cr | ₹7 cr | +0.14% |
| Profit before tax | ₹16 cr | ₹17 cr | -7.39% |
| Tax | ₹-0 cr | ₹5 cr | — |
| Net profit | ₹16 cr | ₹12 cr | +29.66% |
| EPS (₹) | ₹1.75 | ₹2.69 | -34.94% |
Operating margin of 2.42% compares with a Consumer Discretionary sector median of 11.58% across 251 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above 2.42% after the 4.11-percentage-point sequential decline.
- Whether expenses continue to grow more slowly than revenue, after revenue fell 9.20% while expenses fell 5.20%.
- Whether other income remains a major earnings contributor after accounting for 144.01% of pre-tax profit.