RattanIndia swings to Rs 24.03 cr loss as costs outpace revenue
Revenue grew +10.22% QoQ, but expenses rose +13.10%, pushing operating margin down 2.55 percentage points to -0.41%.
Filed 03 Nov 2026, 14:55 IST · RattanIndia Enterprises Ltd (RTNINDIA)
Key takeaways
- RattanIndia Enterprises swung to a consolidated net loss of Rs 24.03 cr in Q2FY27 from a net profit of Rs 14.73 cr in Q1FY27.
- Operating margin fell 2.55 percentage points sequentially to -0.41% as expenses grew +13.10%, faster than revenue at +10.22%.
- The company's operating margin was 12.64 percentage points below the Consumer Discretionary peer median of 12.23% across 188 reported companies.
Price around the results
Revenue growth did not prevent a sequential loss
The consolidated business grew revenue +10.22% sequentially to Rs 2,061.66 cr, but the quarter ended with a net loss of Rs 24.03 cr versus a profit of Rs 14.73 cr in Q1FY27. The reversal came as the additional revenue was more than absorbed by operating costs, interest and depreciation.
Costs and interest drove the margin reversal
Expenses rose +13.10% QoQ, outpacing revenue growth and reducing operating margin by 2.55 percentage points to -0.41%. Interest expense also increased +10.50% to Rs 20.74 cr, adding pressure below the operating line. The tax rate moved down 55.09 percentage points to -7.53%, while other income represented -45.46% of profit before tax; neither changed the quarter's loss outcome.
Margin trails the reported Consumer Discretionary set
RattanIndia's -0.41% operating margin was 12.64 percentage points below the 12.23% median for 188 Consumer Discretionary peers that had reported the quarter. The available quarterly trend shows a sequential deterioration from 2.14% in Q1FY27 to -0.41% in Q2FY27, rather than an improvement in operating leverage.
Shares rose on the filing day
The stock gained +2.02% on the results date, with volume at 3.62x the reference level. The move came despite the sequential swing to a loss and the decline in operating margin.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2,062 cr | ₹1,870 cr | +10.22% |
| Other income | ₹10 cr | ₹10 cr | +1.80% |
| Expenses | ₹2,070 cr | ₹1,830 cr | +13.10% |
| Operating profit | ₹-9 cr | ₹40 cr | — |
| Operating margin (%) | -0.41% | 2.14% | — |
| Interest | ₹21 cr | ₹19 cr | +10.50% |
| Depreciation | ₹3 cr | ₹3 cr | +1.58% |
| Profit before tax | ₹-22 cr | ₹28 cr | — |
| Tax | ₹2 cr | ₹13 cr | -87.43% |
| Net profit | ₹-24 cr | ₹15 cr | — |
| EPS (₹) | ₹-0.18 | ₹0.11 | — |
Operating margin of -0.41% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.02% | +0.44% |
Volume on the results session was 3.62× its 20-day average.
What to watch
- Whether operating margin recovers from -0.41% after the Q2FY27 decline of 2.55 percentage points.
- Whether expense growth moderates from +13.10% QoQ against revenue growth of +10.22%.
- Whether interest growth eases from +10.50% after reaching Rs 20.74 cr.