Profit turned positive, but operating margin stayed at -348.47%
Standalone pre-tax profit was supported by other income equal to +169.71% of PBT as expenses fell -40.36% QoQ.
Filed 05 Nov 2026, 17:28 IST · after market close · SHYAMCENT (SHYAMCENT)
Key takeaways
- Standalone profit before tax turned positive QoQ, but other income was +169.71% of pre-tax profit.
- Revenue grew +12.12% while expenses fell -40.36%, improving operating margin by 387.17 percentage points to -348.47%.
- Operating margin remained negative for a third straight quarter, after -678.79% in Q4FY26 and -735.64% in Q1FY27.
Standalone result improved on lower expenses
The standalone business moved from a pre-tax loss in Q1FY27 to a profit in Q2FY27 as revenue rose +12.12% QoQ and expenses declined -40.36%. That combination narrowed the operating loss, but the operating margin remained deeply negative at -348.47%. Interest was unchanged QoQ, while depreciation increased +2.70%.
Other income drove the reported profit
Other income rose +65.59% QoQ and amounted to +169.71% of pre-tax profit, so the reported profit was not generated by operations alone. The tax rate moved up 168.35 percentage points from Q1FY27 to +36.07% as the company moved from a pre-tax loss to a profit. This tax charge reduced, but did not eliminate, the reported net profit.
Operating margin recovered but stayed negative
Operating margin was negative in each of the last three quarters: -678.79% in Q4FY26, -735.64% in Q1FY27 and -348.47% in Q2FY27. The sequence shows a sharp deterioration in Q1 followed by a 387.17 percentage-point recovery in Q2. The margin has therefore improved sequentially, but has not yet returned to positive territory.
Results were filed after market close
The results were filed after market close on 5 November 2026. There is no same-day market reaction to assess.
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 | ₹0 cr | ₹0 cr | +12.12% |
| Other income | ₹4 cr | ₹2 cr | +65.59% |
| Expenses | ₹2 cr | ₹3 cr | -40.36% |
| Operating profit | ₹-1 cr | ₹-2 cr | +47.11% |
| Operating margin (%) | -348.47% | -735.64% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹0 cr | ₹0 cr | +2.70% |
| Profit before tax | ₹2 cr | ₹-0 cr | — |
| Tax | ₹1 cr | ₹0 cr | +89.13% |
| Net profit | ₹2 cr | ₹-1 cr | — |
| EPS (₹) | ₹0.07 | ₹-0.04 | — |
What to watch
- Whether operating margin improves further from -348.47%.
- Whether other income's share of pre-tax profit falls from +169.71%.
- Whether the expense reduction of -40.36% QoQ is sustained.