Revenue growth outpaced costs, but the stock fell 3.46%
Q2 consolidated operating margin rose 1.12 percentage points QoQ, although other income supplied 25.72% of pre-tax profit.
Filed 12 Nov 2026, 13:37 IST · Shiva Texyarn Ltd (SHIVATEX)
Key takeaways
- Consolidated revenue rose +18.01% QoQ to Rs 87.1 cr as expenses grew +16.52%, lifting operating margin by 1.12 percentage points.
- Net profit rose +86.56% QoQ to Rs 3.47 cr, but other income contributed 25.72% of pre-tax profit while interest expense increased +41.35%.
- The stock fell -3.46% on the result day, while the 10.93% operating margin was 0.30 percentage points below the 11.23% median of 329 reporting Consumer Discretionary peers.
Price around the results
Q2 revenue growth created operating leverage
Shiva Texyarn's consolidated revenue increased +18.01% QoQ, ahead of the +16.52% rise in expenses. That spread lifted operating profit +31.49% and expanded operating margin by 1.12 percentage points to 10.93%.
Higher interest and other income shaped profit
Interest expense rose +41.35% QoQ, limiting the conversion of operating gains into pre-tax profit. Other income increased +127.45% and accounted for 25.72% of pre-tax profit, making reported earnings partly dependent on non-operating income. The tax rate increased 0.20 percentage points, so a lower tax rate did not drive the +86.56% increase in net profit.
Margin remained below the sector median as the stock fell
The company's 10.93% operating margin was 0.30 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. The stock fell -3.46% on November 12, with a volume ratio of 1.54x and a relative return of -3.63%.
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 | ₹87 cr | ₹74 cr | +18.01% |
| Other income | ₹1 cr | ₹1 cr | +127.45% |
| Expenses | ₹78 cr | ₹67 cr | +16.52% |
| Operating profit | ₹10 cr | ₹7 cr | +31.49% |
| Operating margin (%) | 10.93% | 9.81% | — |
| Interest | ₹3 cr | ₹2 cr | +41.35% |
| Depreciation | ₹3 cr | ₹3 cr | -1.22% |
| Profit before tax | ₹5 cr | ₹2 cr | +87.92% |
| Tax | ₹1 cr | ₹1 cr | +87.27% |
| Net profit | ₹3 cr | ₹2 cr | +86.56% |
| EPS (₹) | ₹2.68 | ₹1.43 | +87.41% |
Operating margin of 10.93% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.46% | -3.63% |
Volume on the results session was 1.54× its 20-day average.
What to watch
- Whether operating margin holds above 10.93% after its 1.12-percentage-point QoQ improvement.
- Whether interest expense moderates after rising +41.35% QoQ.
- Whether other income's 25.72% share of pre-tax profit reduces in the next quarter.