Higher revenue, but tax and costs cut Soma Textiles' Q2 profit
Revenue rose 15.29% QoQ, but a 45.66% tax rate and faster expense growth reduced net profit by 29.71%.
Filed 11 Nov 2026, 16:47 IST · after market close · Soma Textiles & Industries Ltd (SOMATEX)
Key takeaways
- Revenue rose 15.29% QoQ, but expenses grew 15.69%, narrowing operating margin by 0.33 percentage points to 7.42%.
- Net profit fell 29.71% QoQ as the tax rate rose to 45.66%, despite pre-tax profit increasing 29.35%.
- Other income contributed 32.49% of pre-tax profit, while operating margin was 3.83 percentage points below the 11.25% sector median.
Price around the results
Revenue growth came with thinner operating spread
Soma Textiles' consolidated revenue increased 15.29% QoQ to Rs 32.73 cr, while operating profit grew 10.45% to Rs 2.43 cr. Expenses rose faster than revenue at 15.69%, reducing operating margin by 0.33 percentage points to 7.42%. This was the second reported quarter in the available trend, so the sequential margin decline is visible but does not establish a longer run of deterioration.
Higher tax and other income reshaped profit
Pre-tax profit increased 29.35% QoQ to Rs 3.57 cr, helped partly by other income, which rose 96.61% to Rs 1.16 cr. Other income accounted for 32.49% of pre-tax profit, making reported earnings less dependent on operating profit. Net profit nevertheless declined 29.71% to Rs 1.94 cr as the tax rate moved from 0% to 45.66%.
Operating margin trails 299 sector peers
Among 299 Consumer Discretionary companies that had reported the same quarter, Soma Textiles' 7.42% operating margin was 3.83 percentage points below the sector median of 11.25%. The comparison places the quarter's operating profitability below the middle of the reported peer set.
Results were filed after market close
The consolidated results were filed after market close, so there is no market reaction to assess yet. The next trading response will need to be read against the sequential margin decline and the tax-driven fall in net profit.
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 | ₹33 cr | ₹28 cr | +15.29% |
| Other income | ₹1 cr | ₹1 cr | +96.61% |
| Expenses | ₹30 cr | ₹26 cr | +15.69% |
| Operating profit | ₹2 cr | ₹2 cr | +10.45% |
| Operating margin (%) | 7.42% | 7.75% | — |
| Interest | ₹0 cr | ₹0 cr | -100.00% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹4 cr | ₹3 cr | +29.35% |
| Tax | ₹2 cr | ₹0 cr | — |
| Net profit | ₹2 cr | ₹3 cr | -29.71% |
| EPS (₹) | ₹0.59 | ₹0.84 | -29.76% |
Operating margin of 7.42% compares with a Consumer Discretionary sector median of 11.25% across 299 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 7.42% after the 0.33-percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after the 15.69% versus 15.29% QoQ gap.
- Whether other income remains a large earnings contributor after accounting for 32.49% of pre-tax profit.