S Chand's loss widens sharply as revenue drops 58% QoQ
Costs rose 1.12% while revenue fell 58.25%, pushing operating margin down 154.25 percentage points; the results were filed after market close.
Filed 05 Nov 2026, 17:15 IST · after market close · S Chand & Company Ltd (SCHAND)
Key takeaways
- Consolidated operating margin fell 154.25 percentage points QoQ to -162.69% as revenue declined 58.25% while expenses rose 1.12%.
- The company reported a consolidated net loss of Rs 66.9 cr, wider than the Rs 18.73 cr loss in Q1FY27, despite a 20.54 percentage-point rise in the tax rate.
- S Chand's operating margin was 174.25 percentage points below the 11.56% median for 262 Consumer Discretionary peers that reported the quarter.
Price around the results
Revenue collapse drove a much wider quarterly loss
Consolidated revenue fell 58.25% QoQ, while expenses increased 1.12%, taking the operating loss to Rs 77.79 cr from Rs 9.67 cr in Q1FY27. The net loss widened to Rs 66.9 cr from Rs 18.73 cr, with EPS moving to -Rs 18.72 from -Rs 5.07. Management said the School and Higher Education segments had steady sales on a year-on-year basis in Q2FY27, although no year-on-year financial comparison is provided here.
Operating margin fell 154.25 percentage points
Expenses grew even as revenue contracted, driving operating margin down 154.25 percentage points to -162.69%. Interest declined 0.35% and depreciation declined 1.63%, so neither materially offset the revenue shortfall. The tax rate rose 20.54 percentage points to 22.21%, while other income represented -5.71% of pre-tax profit and did not provide meaningful support to the loss.
Margin ranked near the bottom of the reported peer set
S Chand's -162.69% operating margin was 174.25 percentage points below the 11.56% median for 262 Consumer Discretionary peers that had reported the same quarter. It ranked second from the bottom in that comparison. The trend also worsened sharply from Q1FY27, when operating margin was -8.44%.
Management points to licensing and paper costs
Management said the company billed Rs 147m of content-licensing revenue in H1FY27 and is focusing on AI-dataset deals to monetise content. It also said it targets content-licensing revenue above Rs 400m and is working towards operating cash flow above Rs 1,000m in FY27. The company said paper prices are seeing double-digit inflation, while preponed paper purchases lifted working-capital days to 147 from 123 in Q2FY26 and are expected by management to normalise by Q4.
Results were filed after market close
The results were filed after market close, so there is no reported market reaction yet. Management said the CPD Singapore acquisition is expected to drive its international-board K-12 business and that it expects to remain net debt free for three quarters in FY27.
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 | ₹48 cr | ₹115 cr | -58.25% |
| Other income | ₹5 cr | ₹4 cr | +24.94% |
| Expenses | ₹126 cr | ₹124 cr | +1.12% |
| Operating profit | ₹-78 cr | ₹-10 cr | -704.45% |
| Operating margin (%) | -162.69% | -8.44% | — |
| Interest | ₹3 cr | ₹3 cr | -0.35% |
| Depreciation | ₹10 cr | ₹10 cr | -1.63% |
| Profit before tax | ₹-86 cr | ₹-19 cr | -351.44% |
| Tax | ₹-19 cr | ₹-0 cr | -5868.75% |
| Net profit | ₹-67 cr | ₹-19 cr | -257.18% |
| EPS (₹) | ₹-18.72 | ₹-5.07 | -269.23% |
Operating margin of -162.69% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The School and Higher Education segments had steady sales year on year in Q2FY27.
- The company billed Rs147m of content licensing revenues in H1FY27.
Guidance & outlook
- The company targets FY27 content licensing revenues above Rs400m.
- The company is working towards delivering operating cash flow above Rs1,000m in FY27.
- The company expects to remain net debt free for three quarters in FY27.
Expansion
- The acquisition of CPD Singapore is expected to drive the company’s international-board K-12 business.
New initiatives
- The company is focusing on content licensing deals to monetize AI datasets.
Problems & risks
- The company is seeing double-digit inflation in paper prices going forward.
- Preponed paper purchases increased inventory and working-capital days, which are expected to normalize by Q4.
- Net working capital increased to 147 days from 123 days in Q2FY26.
What to watch
- Whether operating margin recovers from -162.69% after the Q2FY27 revenue decline of 58.25% QoQ.
- Whether content-licensing billings build from Rs 147m in H1FY27 towards management's FY27 target above Rs 400m.
- Whether net working-capital days move down from 147 towards management's stated Q4 normalisation objective.