Shankara’s Q2 profit rose 194.16% QoQ as margins widened
Revenue grew +4.88% while expenses rose +3.69%, but other income made up 47.73% of pre-tax profit.
Filed 04 Nov 2026, 13:52 IST · Shankara Building Products Ltd (SHANKARA)
Key takeaways
- Consolidated Q2FY27 operating profit rose 72.34% QoQ as revenue grew 4.88% while expenses grew 3.69%.
- Net profit increased 194.16% QoQ to Rs 4.53 cr, but other income contributed 47.73% of pre-tax profit.
- Operating margin improved 1.13 percentage points QoQ to 2.87%, still 9.04 percentage points below the 223-peer sector median.
Price around the results
Revenue growth translated into a sharper operating recovery
Consolidated revenue rose +4.88% QoQ to Rs 367.46 cr, while expenses increased at a slower +3.69%. That operating leverage lifted operating profit +72.34% to Rs 10.53 cr and expanded operating margin by 1.13 percentage points. Pre-tax profit rose +213.71% QoQ, while net profit increased +194.16% to Rs 4.53 cr.
Profit quality remains dependent on non-operating income
Other income was Rs 2.95 cr and accounted for 47.73% of pre-tax profit, making it a material contributor to reported earnings. The tax rate rose 4.87 percentage points QoQ to 26.70%, while interest expense increased +1.00% and depreciation declined 0.88%. The improvement in operating profit therefore did not fully explain the jump in net profit.
Margin improved sequentially but remains below sector levels
Operating margin rose from 1.74% in Q1FY27 to 2.87% in Q2FY27, marking a sequential recovery in the only prior quarter shown. Shankara’s margin was 9.04 percentage points below the 11.91% median for the 223 Consumer Discretionary peers that had reported. The quarter therefore showed better momentum without closing the sector profitability gap.
Shares gained 4.74% after the results
The stock rose 4.74% on the results date, with a 0.02% opening gap and volume at 1.75 times the reference level. The move indicates a positive immediate market response to the sequential earnings recovery, despite the low operating margin and high contribution from other income.
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 | ₹367 cr | ₹350 cr | +4.88% |
| Other income | ₹3 cr | ₹3 cr | -5.75% |
| Expenses | ₹357 cr | ₹344 cr | +3.69% |
| Operating profit | ₹11 cr | ₹6 cr | +72.34% |
| Operating margin (%) | 2.87% | 1.74% | — |
| Interest | ₹5 cr | ₹5 cr | +1.00% |
| Depreciation | ₹2 cr | ₹2 cr | -0.88% |
| Profit before tax | ₹6 cr | ₹2 cr | +213.71% |
| Tax | ₹2 cr | ₹0 cr | +283.72% |
| Net profit | ₹5 cr | ₹2 cr | +194.16% |
| EPS (₹) | ₹1.87 | ₹0.64 | +192.19% |
Operating margin of 2.87% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.74% | +4.11% |
Volume on the results session was 1.75× its 20-day average.
What to watch
- Whether revenue growth stays ahead of the +3.69% QoQ expense growth recorded in Q2FY27.
- Whether operating margin holds above 2.87% and moves closer to the 11.91% sector median.
- Whether other income’s 47.73% contribution to pre-tax profit declines in the next quarter.