Costs outpaced revenue, cutting Shree Ram Twistex's margin to 3.34%
Net profit rose 29.09% quarter on quarter, helped by a tax credit even as operating profit fell 58.12%.
Filed 20 Oct 2026, 17:28 IST · after market close · Shree Ram Twistex Ltd (SRTL)
Key takeaways
- Revenue increased +46.71% qoq, but expenses rose +60.59%, cutting operating profit by -58.12%.
- Operating margin narrowed 8.35 percentage points to 3.34% as costs grew faster than revenue.
- Net profit rose +29.09% to Rs 4.66 cr, helped by a -247.03% tax rate while other income contributed 68.66% of pre-tax profit.
Price around the results
Revenue growth did not convert into operating profit
Shree Ram Twistex’s standalone revenue rose +46.71% qoq to Rs 136.03 cr, but expenses increased faster at +60.59%. That pushed operating profit down -58.12% to Rs 4.54 cr despite the higher sales base. Interest expense fell -19.77%, but this was not enough to offset the cost increase.
Margin compression was masked by tax and other income
Operating margin narrowed by 8.35 percentage points qoq to 3.34%, reflecting the faster rise in expenses. Other income accounted for 68.66% of pre-tax profit, while the -247.03% tax rate lifted net profit despite profit before tax falling -79.32% to Rs 1.34 cr. This makes the quarter’s Rs 4.66 cr net profit less representative of operating performance.
Margin was well below the reporting peer group
The company’s 3.34% operating margin was 8.90 percentage points below the 12.24% median for 34 Consumer Discretionary peers that had reported. It ranked sixth from the bottom on this measure. The qoq decline from 11.69% also points to a sharp deterioration within the two reported quarters.
Shares fell after the post-market filing
The standalone results were filed after market close on 20 October, and the stock fell 4.36% on the next trading day. It was down 6.00% by the following session, with first-day volume at 3.55 times the reference level.
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 | ₹136 cr | ₹93 cr | +46.71% |
| Other income | ₹1 cr | ₹0 cr | +162.86% |
| Expenses | ₹131 cr | ₹82 cr | +60.59% |
| Operating profit | ₹5 cr | ₹11 cr | -58.12% |
| Operating margin (%) | 3.34% | 11.69% | — |
| Interest | ₹2 cr | ₹3 cr | -19.77% |
| Depreciation | ₹2 cr | ₹2 cr | -3.37% |
| Profit before tax | ₹1 cr | ₹6 cr | -79.32% |
| Tax | ₹-3 cr | ₹3 cr | — |
| Net profit | ₹5 cr | ₹4 cr | +29.09% |
| EPS (₹) | ₹1.54 | ₹1.19 | +29.41% |
Operating margin of 3.34% compares with a Consumer Discretionary sector median of 12.24% across 34 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.36% | -4.02% |
| Next session | -6.00% | — |
Volume on the results session was 3.55× its 20-day average.
What to watch
- Whether operating margin recovers from 3.34% toward Q1FY27’s 11.69%.
- Whether expenses continue to grow faster than revenue after +60.59% expense growth versus +46.71% revenue growth.
- The reported tax rate and its effect on net profit after the -247.03% rate in Q2FY27.