S P Apparels profit jumps as lower interest and tax offset margin pressure
Revenue rose 12.75% QoQ, but costs grew faster and operating margin narrowed to 14.74%; other income contributed 5.11% of pre-tax profit.
Filed 12 Nov 2026, 17:37 IST · after market close · S P Apparels Ltd (SPAL)
Key takeaways
- Revenue grew +12.75% QoQ to Rs 452.22 cr, but expenses grew faster at +13.50%, narrowing operating margin by 0.56 percentage points.
- Net profit rose +49.01% QoQ to Rs 37.06 cr as interest expense fell 57.34% and the tax rate declined 5.79 percentage points.
- Operating margin at 14.74% was 3.51 percentage points above the 11.23% median for 329 reporting Consumer Discretionary peers.
Price around the results
Revenue growth came with faster cost growth
S P Apparels’ consolidated revenue increased 12.75% QoQ to Rs 452.22 cr, while operating profit grew only 8.60% to Rs 66.64 cr. Expenses rose 13.50%, outpacing revenue and reducing operating margin by 0.56 percentage points to 14.74%. The margin was still 3.51 percentage points above the 11.23% median among 329 Consumer Discretionary peers that had reported.
Lower interest and tax rates lifted net profit
Profit before tax rose 37.49% QoQ, helped by a 57.34% decline in interest expense to Rs 6.34 cr. The tax rate fell to 24.82% from 30.61%, a reduction of 5.79 percentage points, which also supported the 49.01% increase in net profit. Other income accounted for 5.11% of pre-tax profit, so it was a modest but visible contributor to earnings quality.
Sequential momentum improved, but margin direction softened
The quarter delivered faster growth in net profit than in revenue, but operating profit growth lagged revenue growth because expenses expanded more quickly. Compared with Q1FY27, EPS rose 49.04% to Rs 14.74, while operating margin moved down from 15.30% to 14.74%. With no year-on-year comparison in the reported set, the clearest read is stronger sequential profit momentum alongside softer operating conversion.
Results were filed after market close
The consolidated results were filed at 17:37 IST on 12 November 2026, after market close. No post-results stock reaction is included.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹452 cr | ₹401 cr | +12.75% |
| Other income | ₹3 cr | ₹3 cr | -2.33% |
| Expenses | ₹386 cr | ₹340 cr | +13.50% |
| Operating profit | ₹67 cr | ₹61 cr | +8.60% |
| Operating margin (%) | 14.74% | 15.30% | — |
| Interest | ₹6 cr | ₹15 cr | -57.34% |
| Depreciation | ₹14 cr | ₹13 cr | +2.19% |
| Profit before tax | ₹49 cr | ₹36 cr | +37.49% |
| Tax | ₹12 cr | ₹11 cr | +11.58% |
| Net profit | ₹37 cr | ₹25 cr | +49.01% |
| EPS (₹) | ₹14.74 | ₹9.89 | +49.04% |
Operating margin of 14.74% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 14.74% after the 0.56 percentage-point QoQ decline.
- Whether expense growth stays below or above the Q2FY27 pace of +13.50% QoQ.
- Whether the tax rate remains near 24.82% rather than returning to Q1FY27’s 30.61%.