Snowman margin slips as revenue falls faster than expenses
Net profit fell 78.90% sequentially, with other income making up 86.00% of pre-tax profit.
Filed 28 Oct 2026, 12:22 IST · Snowman Logistics Ltd (SNOWMAN)
Key takeaways
- Revenue growth was -7.95% sequentially while expense growth was -6.35%, pulling operating margin down 1.45 percentage points to 14.65%.
- Net profit fell -78.90% sequentially to Rs 0.96 cr, while other income contributed 86.00% of profit before tax.
- Snowman’s 14.65% operating margin was 30.89 percentage points below the Services peer median across 11 reported companies.
Price around the results
Q2FY27 revenue contraction hit operating profit harder
Snowman Logistics reported standalone Q2FY27 revenue growth of -7.95% sequentially, while operating profit growth was weaker at -16.25%. The sharper operating-profit decline reflects the fact that expenses fell only 6.35%, less than the fall in revenue. Management said warehousing services grew 7.6% year on year, transportation 5.6% and trading and distribution 2.4%.
Higher cost intensity narrowed the operating margin
Costs grew faster than revenue on a sequential basis, reducing operating margin by 1.45 percentage points. Interest expense declined 3.83%, but depreciation rose 0.58%, leaving less operating profit to flow through to pre-tax earnings. The tax rate increased 0.79 percentage points, while profit before tax fell 78.66%.
Profit quality remains weak despite lower interest cost
Other income accounted for 86.00% of profit before tax, making the reported pre-tax profit less representative of operating earnings. Net profit consequently fell 78.90% sequentially to Rs 0.96 cr, and EPS declined 77.78% to Rs 0.06. The results are standalone.
Margin remains below the Services peer median
Operating margin declined from 16.10% in Q1FY27 to 14.65% in Q2FY27, indicating a second consecutive quarter in the available trend with weaker sequential profitability. Snowman’s margin was 30.89 percentage points below the 45.54% median for 11 Services companies that had reported the quarter, placing it fifth from the bottom.
Management points to seasonal demand and network expansion
Management said it expects seasonal demand to strengthen and pointed to a customer acquisition pipeline. The company said it is focused on improving throughput and asset utilisation, and identified an expansion at Patna within its storage network. The presentation said digital platforms, real-time visibility and data-driven systems are being used to improve customer experience and operational performance.
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 | ₹164 cr | ₹178 cr | -7.95% |
| Other income | ₹1 cr | ₹2 cr | -44.40% |
| Expenses | ₹140 cr | ₹149 cr | -6.35% |
| Operating profit | ₹24 cr | ₹29 cr | -16.25% |
| Operating margin (%) | 14.65% | 16.10% | — |
| Interest | ₹6 cr | ₹7 cr | -3.83% |
| Depreciation | ₹17 cr | ₹17 cr | +0.58% |
| Profit before tax | ₹2 cr | ₹7 cr | -78.66% |
| Tax | ₹1 cr | ₹2 cr | -78.31% |
| Net profit | ₹1 cr | ₹5 cr | -78.90% |
| EPS (₹) | ₹0.06 | ₹0.27 | -77.78% |
Operating margin of 14.65% compares with a Services sector median of 45.54% across 11 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.
This quarter
- In Q2 FY27, warehousing services grew 7.6%, transportation grew 5.6% and trading and distribution grew 2.4% year on year.
Guidance & outlook
- The company expects seasonal demand to strengthen and reports a healthy customer acquisition pipeline.
- The company is focused on improving throughput and asset utilization to deliver sustainable growth in the coming quarters.
Expansion
- The company identifies an expansion at Patna within its nationwide storage network.
New initiatives
- Digital platforms, real-time visibility and data-driven decisions are being used to improve customer experience and operational performance.
- Microsoft Dynamics 365 Business Central ERP and WMS support operations, finance, CRM, supply chain, analytics and warehouse MIS.
- The transport management system integrates contracts, POD auditing, on-time delivery performance and live vehicle visibility.
- Online chamber monitoring provides real-time temperature alerts and escalations across the cold chain.
What to watch
- Whether revenue moves back above Rs 163.56 cr after the sequential decline.
- Whether operating margin holds above 14.65% as throughput and asset utilisation improve.
- Whether other income’s 86.00% share of profit before tax declines.