Revenue slips, but Pokarna's operating margin improves sequentially
Expenses fell faster than revenue, though higher interest costs and lower other income pulled pre-tax profit down -19.63% QoQ.
Filed 03 Nov 2026, 17:03 IST · after market close · Pokarna Ltd (POKARNA)
Key takeaways
- Consolidated revenue fell -14.95% QoQ to Rs 161.1 cr, but operating margin improved 1.01 percentage points to 36.90%.
- Net profit declined -19.55% QoQ to Rs 34.27 cr as interest expense rose +22.44% and other income contributed 10.53% of pre-tax profit.
- Pokarna's 36.90% operating margin was 24.67 percentage points above the 12.23% median for 188 Consumer Discretionary peers.
Price around the results
Lower revenue still came with a smaller cost base
In consolidated results, revenue declined -14.95% QoQ while expenses fell -16.29%, allowing operating profit to decrease by a less severe -12.55%. Profit before tax fell -19.63% and net profit declined -19.55%, showing that the operating improvement did not translate into earnings growth.
Margin improved, but interest and other income affected earnings quality
Expenses fell faster than revenue, lifting operating margin by 1.01 percentage points to 36.90%. Interest expense rose +22.44% QoQ, while depreciation increased +0.85%; the tax rate was nearly unchanged, down 0.06 percentage points to 25.62%. Other income made up 10.53% of pre-tax profit, so reported earnings were partly supported by non-operating income.
Operating margin remains well above the sector comparison
Pokarna's 36.90% operating margin was 24.67 percentage points above the 12.23% median among 188 Consumer Discretionary peers that had reported the quarter. Sequentially, margin improved from 35.89% in Q1FY27, but revenue and net profit both declined from that quarter.
Results were filed after market close
The company filed its consolidated Q2FY27 results after market close on 03 Nov 2026. The reported figures therefore provide the operating update, without a market response included in this reading.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹161 cr | ₹189 cr | -14.95% |
| Other income | ₹5 cr | ₹6 cr | -22.89% |
| Expenses | ₹102 cr | ₹121 cr | -16.29% |
| Operating profit | ₹59 cr | ₹68 cr | -12.55% |
| Operating margin (%) | 36.90% | 35.89% | — |
| Interest | ₹6 cr | ₹5 cr | +22.44% |
| Depreciation | ₹12 cr | ₹12 cr | +0.85% |
| Profit before tax | ₹46 cr | ₹57 cr | -19.63% |
| Tax | ₹12 cr | ₹15 cr | -19.84% |
| Net profit | ₹34 cr | ₹43 cr | -19.55% |
| EPS (₹) | ₹11.05 | ₹13.74 | -19.58% |
Operating margin of 36.90% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 36.90% after the 1.01-point QoQ improvement.
- Whether interest expense moves below Rs 6.33 cr after rising +22.44% QoQ.
- Whether revenue improves from Rs 161.1 cr after the -14.95% QoQ decline.