Costs outpaced revenue as Shankesh’s operating margin fell to 6.56%
Standalone revenue rose +31.36% QoQ, but expenses grew +43.45%, cutting net profit by -40.97%.
Filed 05 Nov 2026, 12:46 IST · Shankesh Jewellers Ltd (SHANKESH)
Key takeaways
- Standalone operating margin fell 7.88 percentage points QoQ to 6.56% as expenses grew +43.45%, faster than revenue at +31.36%.
- Standalone net profit declined -40.97% QoQ to Rs 25.52 cr despite revenue growth, while EPS fell -46.47% to Rs 1.97.
- Shankesh’s 6.56% operating margin was 5.02 percentage points below the 11.58% median for 265 reported Consumer Discretionary peers.
Price around the results
Revenue growth did not translate into profit
Standalone revenue increased +31.36% QoQ, but operating profit fell -40.28% as expenses rose faster than sales. Net profit declined -40.97% to Rs 25.52 cr, and EPS fell -46.47% to Rs 1.97. The result shows weaker profit conversion despite higher quarterly revenue.
Expense growth drove the margin squeeze
Expenses grew +43.45% QoQ against revenue growth of +31.36%, reducing operating margin by 7.88 percentage points to 6.56%. Interest expense fell -26.87%, but depreciation increased +82.14%, and neither offset the broader cost increase. Other income contributed only 0.65% of pre-tax profit, while the tax rate declined by just 0.27 percentage points to 25.14%, so non-operating factors did not materially drive reported profit.
Margin trails the reported peer median
Shankesh’s 6.56% operating margin was 5.02 percentage points below the 11.58% median among 265 Consumer Discretionary companies that had reported the quarter. The margin also fell from 14.44% in Q1FY27, marking a sharp sequential deterioration rather than a revenue slowdown.
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 | ₹556 cr | ₹424 cr | +31.36% |
| Other income | ₹0 cr | ₹0 cr | +633.33% |
| Expenses | ₹520 cr | ₹362 cr | +43.45% |
| Operating profit | ₹37 cr | ₹61 cr | -40.28% |
| Operating margin (%) | 6.56% | 14.44% | — |
| Interest | ₹2 cr | ₹3 cr | -26.87% |
| Depreciation | ₹1 cr | ₹0 cr | +82.14% |
| Profit before tax | ₹34 cr | ₹58 cr | -41.18% |
| Tax | ₹9 cr | ₹15 cr | -41.82% |
| Net profit | ₹26 cr | ₹43 cr | -40.97% |
| EPS (₹) | ₹1.97 | ₹3.68 | -46.47% |
Operating margin of 6.56% compares with a Consumer Discretionary sector median of 11.58% across 265 peers that have reported Q2FY27.
What to watch
- Whether expense growth moderates from +43.45% QoQ.
- Whether operating margin recovers from 6.56% toward Q1FY27’s 14.44%.
- Whether net profit improves from Rs 25.52 cr without relying on other income, which was only 0.65% of pre-tax profit.