Studds profit falls 27.13% YoY as costs outrun revenue
Revenue rose 9.30% QoQ and margin recovered 0.81 percentage points, but other income supplied 16.08% of pre-tax profit.
Filed 31 Oct 2026, 19:30 IST · after market close · Studds Accessories Ltd (STUDDS)
Key takeaways
- Standalone net profit fell 27.13% YoY as expenses grew 28.53%, faster than revenue growth of 18.29%.
- Sequentially, revenue grew 9.30% and expenses 8.30%, lifting operating margin by 0.81 percentage points to 12.87%.
- Other income contributed 16.08% of pre-tax profit, while the tax rate rose 2.74 percentage points YoY.
Price around the results
YoY cost squeeze, QoQ recovery
Standalone revenue grew 18.29% YoY, but expenses rose 28.53%, pushing operating margin down 6.93 percentage points and net profit down 27.13%. Sequentially, revenue increased 9.30% while expenses rose 8.30%, lifting operating margin by 0.81 percentage points and net profit by 16.98%.
Other income cushioned pre-tax profit
Other income accounted for 16.08% of pre-tax profit, making reported earnings less dependent on operating profit. The tax rate rose 2.74 percentage points YoY, adding to the pressure on net profit, while interest expense fell 23.81% and was not a source of deterioration.
Margin remains below the earlier FY26 run rate
Operating margin declined for three consecutive quarters from 19.80% in Q2FY26 to 19.12% in Q3FY26, 19.07% in Q4FY26 and 12.06% in Q1FY27. The Q2FY27 recovery to 12.87% reversed only part of that decline. Studds was 0.22 percentage points below the 13.09% median operating margin of 131 Consumer Discretionary peers that had reported the quarter.
No immediate market reaction after late filing
The standalone results were filed after market close, so there is no market reaction to report yet. After the last four results, the stock rose once and fell three times, with a median absolute move of 1.48%, indicating a historically negative but generally limited response.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹182 cr | ₹167 cr | +9.30% | +18.29% |
| Other income | ₹3 cr | ₹3 cr | +4.94% | +18.06% |
| Expenses | ₹159 cr | ₹147 cr | +8.30% | +28.53% |
| Operating profit | ₹23 cr | ₹20 cr | +16.64% | -23.14% |
| Operating margin (%) | 12.87% | 12.06% | — | — |
| Interest | ₹0 cr | ₹0 cr | +6.67% | -23.81% |
| Depreciation | ₹6 cr | ₹5 cr | +2.95% | +6.08% |
| Profit before tax | ₹21 cr | ₹18 cr | +18.70% | -24.36% |
| Tax | ₹6 cr | ₹5 cr | +23.96% | -15.70% |
| Net profit | ₹16 cr | ₹13 cr | +16.98% | -27.13% |
| EPS (₹) | ₹3.94 | ₹3.37 | +16.91% | -27.04% |
Operating margin of 12.87% compares with a Consumer Discretionary sector median of 13.09% across 131 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves above 12.87% next quarter.
- Whether expense growth remains below revenue growth, as it did sequentially at 8.30% versus 9.30%.
- Whether other income remains around 16.08% of pre-tax profit.