Revenue momentum lifted margin, but profit fell on lower other income
Consolidated revenue grew +8.33% QoQ and margin widened 0.88 percentage points, but other income plunged -81.17%, pulling down pre-tax profit and net profit.
Filed 04 Nov 2026, 14:14 IST · S J S Enterprises Ltd (SJS)
Key takeaways
- Consolidated revenue grew +8.33% QoQ to Rs 282.73 cr, while expenses grew +6.99%, lifting operating margin by 0.88 percentage points.
- Net profit declined -21.62% QoQ to Rs 58.33 cr as other income fell -81.17% and the tax rate rose 3.27 percentage points.
- The 29.49% operating margin was 17.26 percentage points above the 12.23% median for 194 Consumer Discretionary peers.
Price around the results
Revenue growth outpaced expenses in Q2FY27
SJS reported consolidated revenue growth of +8.33% QoQ, ahead of the +6.99% increase in expenses. That operating leverage lifted operating profit by +11.66% and widened the operating margin by 0.88 percentage points to 29.49%. The margin also remained 17.26 percentage points above the 12.23% median among 194 Consumer Discretionary peers that have reported.
Lower other income drove the profit decline
Pre-tax profit declined -18.20% QoQ even as operating profit increased, because other income fell -81.17% to Rs 6.26 cr and contributed 8.01% of pre-tax profit. The tax rate rose 3.27 percentage points to 25.42%, adding to the pressure on net profit, which declined -21.62% QoQ. This makes the quarter's operating improvement clearer than the headline profit trend.
Margin improved from Q1, with limited quarterly history
Operating margin increased from 28.61% in Q1FY27 to 29.49% in Q2FY27, reversing the sequential pressure visible in the prior quarter. The available trend shows one earlier quarter, so it does not yet establish a multi-quarter direction for margins.
Management links growth plans to capacity additions
Management said it is targeting strong organic growth with best-in-class margins. The presentation said SDPL is adding 13,243 sq. ft. per day of chrome-plating capacity, while the Bengaluru facility expansion is expected to add approximately 20% capacity. The company said commercial operations at the SJS Display Electronics facility are expected by September 2027.
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 | ₹283 cr | ₹261 cr | +8.33% |
| Other income | ₹6 cr | ₹33 cr | -81.17% |
| Expenses | ₹199 cr | ₹186 cr | +6.99% |
| Operating profit | ₹83 cr | ₹75 cr | +11.66% |
| Operating margin (%) | 29.49% | 28.61% | — |
| Interest | ₹1 cr | ₹1 cr | -3.57% |
| Depreciation | ₹11 cr | ₹12 cr | -7.23% |
| Profit before tax | ₹78 cr | ₹96 cr | -18.20% |
| Tax | ₹20 cr | ₹21 cr | -6.14% |
| Net profit | ₹58 cr | ₹74 cr | -21.62% |
| EPS (₹) | ₹18.08 | ₹23.18 | -22.00% |
Operating margin of 29.49% compares with a Consumer Discretionary sector median of 12.23% across 194 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
- SJS targets strong organic growth with best-in-class margins.
Expansion
- SDPL is adding 13,243 sq. ft. per day of chrome-plating capacity.
- The Bengaluru facility expansion will add approximately 20% capacity.
- Commercial operations at the SJS Display Electronics facility are expected by September 2027.
What to watch
- Whether operating margin holds above 29.49% in the next quarter.
- Whether other income remains near or below Rs 6.26 cr after its -81.17% QoQ decline.
- Updates on the 13,243 sq. ft. per day chrome-plating capacity addition and the approximately 20% Bengaluru expansion.