Responsive Industries lifts margin as costs trail revenue growth
Consolidated operating margin rose 2.37 percentage points sequentially, while a lower tax rate also supported the 136.86% rise in net profit.
Filed 30 Oct 2026, 17:07 IST · after market close · Responsive Industries Ltd (RESPONIND)
Key takeaways
- Revenue grew 6.23% sequentially while expenses rose 3.36%, lifting operating margin by 2.37 percentage points.
- Net profit rose 136.86% sequentially, helped by a 2.08 percentage-point decline in the tax rate.
- Other income contributed 10.73% of consolidated profit before tax, leaving a modest quality caveat.
Price around the results
Operating leverage lifted Q2FY27 profitability
Responsive Industries reported consolidated revenue growth of 6.23% sequentially to Rs 204.89 cr, while expenses increased only 3.36%. That cost gap lifted operating profit growth to 27.11% and expanded operating margin from 12.09% to 14.46%. Net profit rose 136.86% to Rs 6.49 cr, although the low base in Q1FY27 makes the percentage increase look large.
Lower tax aided profit conversion
The tax rate declined by 2.08 percentage points to 22.62%, providing an additional lift to net profit. Interest expense rose 5.5% and depreciation increased 1.19%, so the improvement in pre-tax profit was driven mainly by higher operating profit rather than lower financing or depreciation charges. Other income accounted for 10.73% of consolidated profit before tax, which limits the extent to which the quarter's profit can be viewed as purely operating.
Margin was above the reported peer median
The company's 14.46% operating margin was 1.37 percentage points above the 13.09% median for the 129 Consumer Discretionary peers that had reported the same quarter.
Results were filed after market close
The consolidated results were filed after market close on 30 October 2026.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹205 cr | ₹193 cr | +6.23% |
| Other income | ₹1 cr | ₹2 cr | -55.88% |
| Expenses | ₹175 cr | ₹170 cr | +3.36% |
| Operating profit | ₹30 cr | ₹23 cr | +27.11% |
| Operating margin (%) | 14.46% | 12.09% | — |
| Interest | ₹4 cr | ₹4 cr | +5.50% |
| Depreciation | ₹18 cr | ₹18 cr | +1.19% |
| Profit before tax | ₹8 cr | ₹4 cr | +130.49% |
| Tax | ₹2 cr | ₹1 cr | +111.11% |
| Net profit | ₹6 cr | ₹3 cr | +136.86% |
| EPS (₹) | ₹0.24 | ₹0.10 | +140.00% |
Operating margin of 14.46% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What to watch
- Whether revenue growth remains ahead of expense growth after the 6.23% versus 3.36% sequential gap.
- Whether operating margin holds above 14.46% after the 2.37 percentage-point improvement.
- Whether the tax rate stays near 22.62% and other income remains a limited share of profit before tax.