Revenue surged 49.26%, but costs outpaced growth and cut margins
Standalone net profit rose 16.09% QoQ as a lower tax rate partly offset weaker operating leverage and higher interest costs.
Filed 04 Nov 2026, 18:56 IST · after market close · Shringar House of Mangalsutra Ltd (SHRINGARMS)
Key takeaways
- Standalone revenue rose +49.26% QoQ to Rs 818.66 cr, but expenses grew faster at +52.88%, narrowing operating margin by 2.21 percentage points to 6.71%.
- Net profit increased +16.09% QoQ to Rs 39.47 cr, helped by a 2.54-percentage-point fall in the tax rate to 25.02%, while other income contributed only 3.08% of pre-tax profit.
- Shringar's 6.71% operating margin was 5.23 percentage points below the 11.94% median for 214 reported Consumer Discretionary peers.
Price around the results
Revenue growth came with weaker operating leverage
Standalone revenue rose +49.26% QoQ to Rs 818.66 cr, while operating profit grew only +12.26% to Rs 54.94 cr. Expenses increased +52.88%, faster than revenue, reducing operating margin by 2.21 percentage points to 6.71%. Net profit still rose +16.09% to Rs 39.47 cr, but the increase was not driven by operating profit growth alone.
Higher interest and a lower tax rate shaped profit
Interest expense increased +24.27% QoQ, adding pressure below operating profit. The tax rate fell 2.54 percentage points to 25.02%, which supported net profit growth despite the margin squeeze. Other income was 3.08% of pre-tax profit, so it provided limited support to reported earnings.
Capacity investment is the main operating backdrop
Management said capacity added in February 2026 took installed capacity to 4,000 kg, after an investment of approximately Rs 15 cr in expansion and machinery upgrades. The company said production from the new facility is expected to ramp up in the coming quarters. Management also said it plans a wholly owned subsidiary to diversify across jewellery categories and B2B and B2C channels.
Margin trails the reported peer median
Among 214 Consumer Discretionary peers that have reported, the sector median operating margin was 11.94%, putting Shringar 5.23 percentage points below that level at 6.71%. The company filed these standalone results after market close on 4 Nov 2026.
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 | ₹819 cr | ₹548 cr | +49.26% |
| Other income | ₹2 cr | ₹1 cr | +20.90% |
| Expenses | ₹764 cr | ₹500 cr | +52.88% |
| Operating profit | ₹55 cr | ₹49 cr | +12.26% |
| Operating margin (%) | 6.71% | 8.92% | — |
| Interest | ₹3 cr | ₹2 cr | +24.27% |
| Depreciation | ₹1 cr | ₹1 cr | +4.62% |
| Profit before tax | ₹53 cr | ₹47 cr | +12.17% |
| Tax | ₹13 cr | ₹13 cr | +1.86% |
| Net profit | ₹39 cr | ₹34 cr | +16.09% |
| EPS (₹) | ₹4.09 | ₹3.53 | +15.86% |
Operating margin of 6.71% compares with a Consumer Discretionary sector median of 11.94% across 214 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.
Guidance & outlook
- Production from the new facility is expected to ramp up in the coming quarters.
Expansion
- The company added capacity in February 2026, increasing installed capacity to 4,000 kg.
- The company invested approximately INR 15 crore to expand capacity and upgrade machinery at its new factory.
- The company plans to establish a wholly owned subsidiary for jewellery manufacturing, designing and trading.
- The subsidiary is intended to diversify the company across jewellery categories and B2B and B2C channels.
- The company has expanded its facilitator network to five cities and identified more cities for rollout.
New products
- The company launched four lightweight gold jewellery collections: Aura, Shimmer, Imperia and Prism.
- The company launched a new bridal jewellery collection at IIJS Bharat Premiere 2026.
New initiatives
- The company is building a pan-India supply chain through third-party intermediaries and facilitators.
Problems & risks
- The company says its operations are working-capital intensive and require adequate liquidity and funds.
What to watch
- Whether operating margin recovers from 6.71% after expenses grew +52.88% QoQ.
- Whether interest expense growth moderates from +24.27% QoQ.
- Reported production from the new facility against management's statement that capacity of 4,000 kg will support a ramp-up.