RSWM’s Q2 margin improves as revenue growth outpaces costs
Consolidated net profit rose +30.18% QoQ, but operating margin remained 4.51 percentage points below the sector median.
Filed 02 Nov 2026, 17:50 IST · after market close · RSWM Ltd (RSWM)
Key takeaways
- Consolidated revenue grew +13.87% QoQ while expenses rose +13.24%, lifting operating margin by 0.51 percentage points to 8.27%.
- Net profit increased +30.18% QoQ to Rs 25.58 cr despite negative other income of Rs 1.89 cr, which reduced pre-tax profit by 5.28%.
- At 8.27%, RSWM's operating margin was 4.51 percentage points below the 12.78% median of 136 reported Consumer Discretionary peers.
Price around the results
Revenue growth delivered a modest margin lift
Consolidated revenue rose +13.87% QoQ to Rs 1,322.29 cr, while expenses increased +13.24% to Rs 1,212.90 cr. Because costs grew slightly slower than revenue, operating profit increased +21.36% and operating margin expanded by 0.51 percentage points to 8.27%. The quarter history shows an improvement from 7.76% in Q1FY27, but does not establish a longer multi-quarter direction.
Profit growth was not aided by tax or other income
Other income was negative at Rs 1.89 cr and accounted for -5.28% of pre-tax profit, so it did not support earnings. Interest was broadly unchanged, rising +0.28% QoQ to Rs 32.68 cr, while the tax rate increased by 0.48 percentage points to 28.53%. Net profit therefore grew +30.18% mainly alongside the higher operating profit and pre-tax profit, rather than from a lower tax rate or other income.
Margin remains below the reported peer median
RSWM's 8.27% operating margin was 4.51 percentage points below the 12.78% median for the 136 Consumer Discretionary peers that had reported. The company ranked 41st from the bottom on this measure, leaving its margin below the sector comparison despite the sequential improvement.
Results were filed after market close
The consolidated results were filed after market close on 2 November 2026. The stock's post-results move cannot yet be assessed against its past reaction history.
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 | ₹1,322 cr | ₹1,161 cr | +13.87% |
| Other income | ₹-2 cr | ₹9 cr | — |
| Expenses | ₹1,213 cr | ₹1,071 cr | +13.24% |
| Operating profit | ₹109 cr | ₹90 cr | +21.36% |
| Operating margin (%) | 8.27% | 7.76% | — |
| Interest | ₹33 cr | ₹33 cr | +0.28% |
| Depreciation | ₹39 cr | ₹39 cr | -0.23% |
| Profit before tax | ₹36 cr | ₹27 cr | +31.05% |
| Tax | ₹10 cr | ₹8 cr | +33.29% |
| Net profit | ₹26 cr | ₹20 cr | +30.18% |
| EPS (₹) | ₹5.43 | ₹4.17 | +30.22% |
Operating margin of 8.27% compares with a Consumer Discretionary sector median of 12.78% across 136 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 8.27% after the 0.51 percentage-point QoQ improvement.
- Whether expenses continue to grow no faster than the +13.87% QoQ revenue pace.
- Whether other income remains below zero after the Rs 1.89 cr loss in Q2FY27.