Sandhar's Q2 profit rises 50.30% as margins recover sequentially
Revenue grew faster than expenses, lifting operating margin by 0.85 percentage points, while a lower tax rate also supported net profit.
Filed 05 Nov 2026, 13:26 IST · Sandhar Technologies Limited (SANDHAR)
Key takeaways
- Consolidated revenue rose 17.06% sequentially, while operating profit grew 30.17% as expenses increased more slowly at 15.98%.
- Net profit increased 50.30% to Rs 56.03 cr, helped by a 2.5 percentage-point fall in the tax rate and other income equal to 10.24% of pre-tax profit.
- Sandhar's 8.46% operating margin was 3.10 percentage points below the 11.56% median for 262 Consumer Discretionary peers that had reported.
Price around the results
Revenue momentum lifted consolidated operating profit
On a consolidated basis, Q2FY27 revenue rose 17.06% sequentially to Rs 1,617.68 cr, while operating profit grew 30.17% to Rs 136.93 cr. Expenses increased 15.98%, slower than revenue, which lifted operating margin by 0.85 percentage points to 8.46%.
Lower tax rate and other income amplified profit growth
Net profit grew 50.30% sequentially to Rs 56.03 cr, ahead of pre-tax profit growth of 45.31%. The tax rate fell by 2.5 percentage points to 24.60%, while other income accounted for 10.24% of pre-tax profit; these factors supported reported profit beyond the operating improvement. Interest expense rose 2.83%, so financing costs were not the main driver of the earnings increase.
Margin improved but remained below the sector median
Sandhar's 8.46% operating margin was 3.10 percentage points below the 11.56% median among 262 Consumer Discretionary peers that had reported the quarter. The sequential margin recovery therefore came with a continuing gap to the sector comparison.
The stock gave back part of its initial filing-day gain
The stock opened 2.16% higher on the results day but was up 0.70% at the measured close, with relative performance of -1.71%. Trading volume was 5.56 times the reference level, indicating a marked increase in activity around the filing.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,618 cr | ₹1,382 cr | +17.06% |
| Other income | ₹8 cr | ₹13 cr | -43.55% |
| Expenses | ₹1,481 cr | ₹1,277 cr | +15.98% |
| Operating profit | ₹137 cr | ₹105 cr | +30.17% |
| Operating margin (%) | 8.46% | 7.61% | — |
| Interest | ₹18 cr | ₹18 cr | +2.83% |
| Depreciation | ₹52 cr | ₹50 cr | +4.41% |
| Profit before tax | ₹74 cr | ₹51 cr | +45.31% |
| Tax | ₹18 cr | ₹14 cr | +31.89% |
| Net profit | ₹56 cr | ₹37 cr | +50.30% |
| EPS (₹) | ₹9.31 | ₹6.19 | +50.40% |
Operating margin of 8.46% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.70% | -1.71% |
Volume on the results session was 5.56× its 20-day average.
What to watch
- Whether operating margin holds above 8.46% after the sequential recovery of 0.85 percentage points.
- Whether expenses continue to grow below the 17.06% sequential revenue increase, against the Q2 expense growth of 15.98%.
- Whether other income remains near its 10.24% share of pre-tax profit and the tax rate stays below 24.60%.