Salona's margin edges up, but remains below the peer median
Revenue growth slightly outpaced costs QoQ, but higher interest, depreciation and tax kept profit growth below pre-tax growth.
Filed 11 Nov 2026, 18:45 IST · after market close · Salona Cotspin Ltd (SALONA)
Key takeaways
- Standalone revenue rose +8.12% QoQ while expenses increased +7.96%, lifting operating margin by 0.15 percentage points.
- Net profit grew +16.37% QoQ to Rs 2.63 cr even as the tax rate increased by 5.12 percentage points to 25.16%.
- The 5.58% operating margin was 5.67 percentage points below the 11.25% median for 299 Consumer Discretionary peers.
Price around the results
Revenue growth narrowly outpaced cost growth
Standalone revenue increased +8.12% QoQ to Rs 212.57 cr, while expenses grew +7.96% to Rs 200.71 cr. The small difference in growth rates lifted operating profit by +10.96% to Rs 11.85 cr and raised operating margin by 0.15 percentage points to 5.58%.
Higher tax limited the conversion from pre-tax profit
Interest expense rose +5.35% QoQ and depreciation increased +8.84%, adding pressure below the operating line. Profit before tax grew +24.47%, but the tax rate rose from 20.04% to 25.16%, limiting net-profit growth to +16.37%. Other income contributed only 1.99% of pre-tax profit, so reported earnings were not materially dependent on it.
Margin recovered slightly but remains below the recent peak
Operating margin improved from 5.43% in Q1FY27 but remained below the 7.32% recorded in Q4FY26. At 5.58%, Salona's margin was 5.67 percentage points below the 11.25% sector median; among 299 reported peers, it ranked 67th from the bottom.
Results were filed after market close
The standalone results were filed after market close on 11 November 2026 at 18:45 IST. The filing therefore comes before a post-results market reaction can be assessed.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹213 cr | ₹197 cr | +8.12% |
| Other income | ₹0 cr | ₹0 cr | +40.00% |
| Expenses | ₹201 cr | ₹186 cr | +7.96% |
| Operating profit | ₹12 cr | ₹11 cr | +10.96% |
| Operating margin (%) | 5.58% | 5.43% | — |
| Interest | ₹6 cr | ₹5 cr | +5.35% |
| Depreciation | ₹3 cr | ₹2 cr | +8.84% |
| Profit before tax | ₹4 cr | ₹3 cr | +24.47% |
| Tax | ₹1 cr | ₹1 cr | +54.39% |
| Net profit | ₹3 cr | ₹2 cr | +16.37% |
| EPS (₹) | ₹9.98 | ₹8.58 | +16.32% |
Operating margin of 5.58% compares with a Consumer Discretionary sector median of 11.25% across 299 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin sustains the 5.58% Q2FY27 level after 7.32% in Q4FY26.
- Whether expenses continue to grow below the +8.12% QoQ revenue growth rate.
- Whether interest expense remains near Rs 5.71 cr as revenue changes.