Revenue momentum lifted Sharda Motor's margin, but it trails peers
Q2 consolidated revenue rose +19.80% QoQ as costs kept pace; other income made up 17.86% of pre-tax profit.
Filed 12 Nov 2026, 19:52 IST · after market close · Sharda Motor Industries Ltd (SHARDAMOTR)
Key takeaways
- Consolidated revenue grew +19.80% QoQ while expenses rose +19.57%, lifting operating margin by 0.17 percentage points to 10.38%.
- Net profit increased +14.92% QoQ to Rs 99.44 cr, but other income contributed 17.86% of pre-tax profit.
- The 10.38% operating margin was 0.85 percentage points below the 11.23% median for 329 Consumer Discretionary peers.
Price around the results
Revenue growth edged ahead of costs
Sharda Motor's consolidated revenue grew +19.80% QoQ, slightly faster than the +19.57% increase in expenses. That narrow spread lifted operating margin by 0.17 percentage points, while operating profit growth of +21.76% outpaced revenue growth.
Lower tax rate supported profit conversion
Net profit grew +14.92% QoQ, while the tax rate declined by 0.53 percentage points to 24.23%, helping profit after tax despite interest expense rising +7.32%. Profit quality also warrants attention because other income accounted for 17.86% of pre-tax profit.
Margin remains below the sector median
The company's 10.38% operating margin was 0.85 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. The company filed these consolidated results after market close on 12 Nov 2026, so the stock's response is not yet covered.
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 | ₹1,211 cr | ₹1,011 cr | +19.80% |
| Other income | ₹23 cr | ₹28 cr | -15.71% |
| Expenses | ₹1,086 cr | ₹908 cr | +19.57% |
| Operating profit | ₹126 cr | ₹103 cr | +21.76% |
| Operating margin (%) | 10.38% | 10.21% | — |
| Interest | ₹1 cr | ₹1 cr | +7.32% |
| Depreciation | ₹17 cr | ₹15 cr | +11.94% |
| Profit before tax | ₹131 cr | ₹115 cr | +14.13% |
| Tax | ₹32 cr | ₹28 cr | +11.70% |
| Net profit | ₹99 cr | ₹87 cr | +14.92% |
| EPS (₹) | ₹17.32 | ₹15.07 | +14.93% |
Operating margin of 10.38% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves above the 11.23% sector median.
- Whether revenue growth continues to outpace expense growth after the +19.80% versus +19.57% gap in Q2.
- Whether other income's 17.86% share of pre-tax profit changes in the next quarter.