Pioneer Embroideries slips into Q2 loss as costs outpace revenue
Revenue rose +7.32% QoQ, but higher costs, interest and depreciation pushed PBT from a Rs 0.17 cr profit to a Rs -2.78 cr loss.
Filed 11 Nov 2026, 18:05 IST · after market close · Pioneer Embroideries Ltd (PIONEEREMB)
Key takeaways
- Consolidated operating margin fell 1.06 percentage points to 3.02% as expenses grew +8.50% QoQ, faster than revenue at +7.32%.
- Profit before tax moved from a Rs 0.17 cr profit in Q1FY27 to a Rs -2.78 cr loss as interest rose +20.00% and depreciation increased +6.47%.
- Pioneer Embroideries' 3.02% operating margin was 8.23 percentage points below the Consumer Discretionary median across 299 reported peers.
Price around the results
Revenue growth did not convert into profit
Consolidated revenue increased +7.32% QoQ, but operating profit fell -20.30%, showing weaker profit conversion. Profit before tax consequently moved from a Rs 0.17 cr profit in Q1FY27 to a Rs -2.78 cr loss. Net profit was Rs -2.02 cr, with EPS at Rs -0.66.
Costs and financing weighed on margins
Expenses grew +8.50% QoQ, outpacing revenue growth and reducing operating margin by 1.06 percentage points to 3.02%. Interest rose +20.00% and depreciation increased +6.47%, adding pressure below operating profit. Other income's share of pre-tax profit was -8.63%, so it did not cushion the loss; the tax rate fell 3.40 percentage points to 27.38%.
Margin remains below the sector comparison
The sequential margin decline from 4.08% marks a weaker second quarter on the operating line. Pioneer Embroideries' 3.02% margin was 8.23 percentage points below the 11.25% median for 299 Consumer Discretionary peers that had reported. The results were filed after market close, so there is no post-result market reaction to assess.
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 | ₹104 cr | ₹97 cr | +7.32% |
| Other income | ₹0 cr | ₹2 cr | -86.59% |
| Expenses | ₹101 cr | ₹93 cr | +8.50% |
| Operating profit | ₹3 cr | ₹4 cr | -20.30% |
| Operating margin (%) | 3.02% | 4.08% | — |
| Interest | ₹2 cr | ₹2 cr | +20.00% |
| Depreciation | ₹4 cr | ₹4 cr | +6.47% |
| Profit before tax | ₹-3 cr | ₹0 cr | — |
| Tax | ₹-1 cr | ₹0 cr | — |
| Net profit | ₹-2 cr | ₹0 cr | — |
| EPS (₹) | ₹-0.66 | ₹0.04 | — |
Operating margin of 3.02% compares with a Consumer Discretionary sector median of 11.25% across 299 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 3.02% in the next quarter.
- Whether expense growth remains above or moves below revenue growth of +7.32% QoQ.
- Whether profit before tax moves back above the Q1FY27 level of Rs 0.17 cr.