Sandesh swings to loss as Q2 revenue falls -68.55% sequentially
Expenses fell -66.25%, less than revenue, pushing operating margin down 6.99 percentage points; other income also fell -94.24%.
Filed 03 Nov 2026, 18:21 IST · after market close · Sandesh Ltd (SANDESH)
Key takeaways
- Sandesh swung to a consolidated net loss of Rs 2 cr from Q1FY27 profit of Rs 99.49 cr as revenue fell -68.55% sequentially.
- Operating margin declined 6.99 percentage points to -2.76% because expenses fell -66.25%, less than the revenue decline.
- Other income fell -94.24% to Rs 5.31 cr, while a tax expense of Rs 1.66 cr left the reported tax rate at -486.90%.
Price around the results
Revenue decline erased Q1’s operating profit
Sandesh reported a consolidated Q2FY27 net loss of Rs 2 cr after Q1FY27 profit of Rs 99.49 cr, as revenue fell -68.55% to Rs 144.1 cr. Operating profit swung from Rs 19.4 cr to a loss of Rs 3.97 cr, taking operating margin down 6.99 percentage points to -2.76%. The sharp sequential fall in other income, down -94.24% to Rs 5.31 cr, also reduced support below operating profit.
Costs contracted more slowly than revenue
Expenses declined -66.25%, less than the -68.55% fall in revenue, which explains the operating-margin compression. Depreciation rose 5.84% and interest rose 25.00%, though both remained small relative to the revenue movement. Other income represented -1561.76% of pre-tax profit because reported pre-tax profit was a loss of Rs 0.34 cr; the ratio therefore signals a negative denominator rather than a recurring earnings contribution.
Q2 margin was below the Consumer Discretionary peer median
The quarter reversed Q1FY27’s 4.23% operating margin, with Q2FY27 moving to -2.76%. Sandesh’s margin was 14.99 percentage points below the 12.23% median among 188 Consumer Discretionary peers that had reported the same quarter, placing it 14th from the bottom.
Results were filed after the market close
The consolidated results were filed at 18:21 IST on 03 Nov 2026, after market close. The stock response was therefore not yet part of the reported quarter’s market reaction.
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 | ₹144 cr | ₹458 cr | -68.55% |
| Other income | ₹5 cr | ₹92 cr | -94.24% |
| Expenses | ₹148 cr | ₹439 cr | -66.25% |
| Operating profit | ₹-4 cr | ₹19 cr | — |
| Operating margin (%) | -2.76% | 4.23% | — |
| Interest | ₹0 cr | ₹0 cr | +25.00% |
| Depreciation | ₹2 cr | ₹2 cr | +5.84% |
| Profit before tax | ₹-0 cr | ₹110 cr | — |
| Tax | ₹2 cr | ₹11 cr | -84.27% |
| Net profit | ₹-2 cr | ₹99 cr | — |
| EPS (₹) | ₹-2.65 | ₹131.43 | — |
Operating margin of -2.76% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above Q1FY27’s 4.23%.
- Whether expenses continue to fall more slowly than revenue after declines of -66.25% and -68.55%, respectively.
- Whether other income stays near Rs 5.31 cr rather than Q1FY27’s Rs 92.22 cr.