Ruby Mills profit jumps on other income as operating margin slumps
Other income made up 119.14% of pre-tax profit, while faster expense growth cut operating margin to 10.06% from 27.90% QoQ.
Filed 12 Nov 2026, 23:50 IST · after market close · Ruby Mills Ltd (RUBYMILLS)
Key takeaways
- Consolidated net profit rose +331.11% QoQ to Rs 50.44 cr, driven mainly by other income of Rs 82.48 cr.
- Expenses grew +43.12% QoQ against revenue growth of +14.74%, pulling operating margin down 17.84 percentage points to 10.06%.
- Operating margin was 1.10 percentage points below the 11.16% median for 333 Consumer Discretionary peers that had reported.
Price around the results
Profit growth came from below operations
Ruby Mills reported consolidated net profit growth of +331.11% QoQ, while revenue increased +14.74% to Rs 104.96 cr. The main uplift came from other income, which rose +512.32% QoQ to Rs 82.48 cr and represented 119.14% of pre-tax profit. This makes the quarter's profit less dependent on operating performance.
Costs sharply outpaced revenue
Expenses increased +43.12% QoQ, nearly three times the pace of revenue growth, so operating margin narrowed 17.84 percentage points to 10.06%. Interest expense also rose +10.61% to Rs 10.95 cr, while depreciation was broadly unchanged. The tax rate fell only 0.61 percentage points to 27.14%, so the lower rate was not the main reason for the profit increase.
Margin fell from the previous quarter and lagged peers
Operating margin declined from 27.90% in Q1FY27 to 10.06% in Q2FY27, marking a clear sequential deterioration, though the available trend covers only these two quarters. Ruby Mills was 1.10 percentage points below the 11.16% median operating margin across 333 reported Consumer Discretionary peers. The results were filed after market close, so there is no reported market reaction yet.
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 | ₹105 cr | ₹91 cr | +14.74% |
| Other income | ₹82 cr | ₹13 cr | +512.32% |
| Expenses | ₹94 cr | ₹66 cr | +43.12% |
| Operating profit | ₹11 cr | ₹26 cr | -58.64% |
| Operating margin (%) | 10.06% | 27.90% | — |
| Interest | ₹11 cr | ₹10 cr | +10.61% |
| Depreciation | ₹13 cr | ₹13 cr | -0.39% |
| Profit before tax | ₹69 cr | ₹16 cr | +327.61% |
| Tax | ₹19 cr | ₹4 cr | +318.49% |
| Net profit | ₹50 cr | ₹12 cr | +331.11% |
| EPS (₹) | ₹15.08 | ₹3.50 | +330.86% |
Operating margin of 10.06% compares with a Consumer Discretionary sector median of 11.16% across 333 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 10.06% after expenses grew +43.12% QoQ.
- Whether other income remains close to Rs 82.48 cr or returns nearer to the Rs 13.47 cr recorded in Q1FY27.
- Whether interest expense moves down from Rs 10.95 cr after rising +10.61% QoQ.