Safari’s margin drops 2.55 points as costs outpace revenue
Consolidated profit fell 22.66% QoQ, with lower tax partly cushioning the impact of weaker operating profit.
Filed 05 Nov 2026, 14:07 IST · Safari Industries (India) Ltd (SAFARI)
Key takeaways
- Safari’s consolidated operating margin fell 2.55 percentage points QoQ to 10.26% as expenses rose 1.82% while revenue declined 1.08%.
- Consolidated net profit declined 22.66% QoQ to Rs 36.93 cr, although the tax rate fell 2.65 percentage points to 19.14%.
- Operating margin was 1.3 percentage points below the 11.56% median for 262 reported Consumer Discretionary peers.
Price around the results
Costs reversed the operating leverage
Safari’s consolidated revenue declined 1.08% QoQ, but expenses increased 1.82%, pushing operating profit down 20.82%. That mismatch reduced operating margin by 2.55 percentage points to 10.26% and drove a 22.66% fall in net profit.
Lower tax softened the profit decline
The consolidated tax rate fell 2.65 percentage points to 19.14%, which cushioned the 25.19% QoQ decline in profit before tax and kept the net-profit decline to 22.66%. Other income accounted for 15.83% of profit before tax, so reported earnings also had a meaningful non-operating contribution.
Margin trails the reported peer median
Safari’s 10.26% operating margin was 1.3 percentage points below the 11.56% median among 262 Consumer Discretionary peers that had reported the same quarter. The available quarterly trend shows a decline from 12.81% in Q1FY27, making the sequential margin loss the key movement in this reporting period.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹582 cr | ₹589 cr | -1.08% |
| Other income | ₹7 cr | ₹7 cr | +0.42% |
| Expenses | ₹523 cr | ₹513 cr | +1.82% |
| Operating profit | ₹60 cr | ₹75 cr | -20.82% |
| Operating margin (%) | 10.26% | 12.81% | — |
| Interest | ₹2 cr | ₹3 cr | -3.56% |
| Depreciation | ₹19 cr | ₹19 cr | -1.05% |
| Profit before tax | ₹46 cr | ₹61 cr | -25.19% |
| Tax | ₹9 cr | ₹13 cr | -34.29% |
| Net profit | ₹37 cr | ₹48 cr | -22.66% |
| EPS (₹) | ₹7.54 | ₹9.75 | -22.67% |
Operating margin of 10.26% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 10.26% after the 2.55-percentage-point QoQ decline.
- Whether expenses stop growing faster than revenue after rising 1.82% against a 1.08% revenue decline.
- Whether other income remains a smaller contributor than 15.83% of profit before tax.