Sumit Woods profit drops 74.50% as revenue decline squeezes margins
The consolidated operating margin fell 1.37 percentage points, while a higher tax rate and lower other income further reduced quarterly profit.
Filed 04 Nov 2026, 14:38 IST · Sumit Woods Ltd (SUMIT)
Key takeaways
- Consolidated net profit fell 74.50% sequentially to Rs 1.03 cr as revenue declined 18.88%.
- Operating margin narrowed 1.37 percentage points to 8.68% because expenses fell less than revenue.
- The stock fell 7.88% at t0, with trading volume at 2.14 times the reference level.
Price around the results
Revenue decline cut operating profit by 29.96%
Sumit Woods' consolidated revenue fell 18.88% sequentially to Rs 36.65 cr, while operating profit declined 29.96% to Rs 3.18 cr. Profit before tax fell 67.53% to Rs 1.76 cr, and net profit fell 74.50% to Rs 1.03 cr.
Costs outpaced revenue, while tax and interest added pressure
Expenses declined 17.64%, less than the 18.88% fall in revenue, narrowing operating margin by 1.37 percentage points to 8.68%. Interest expense rose 16.84%, while the tax rate increased 15.87 percentage points to 41.35%. Other income fell 89.86% and accounted for 11.93% of pre-tax profit in the quarter.
Margin trailed the Consumer Discretionary peer median
Sumit Woods' 8.68% operating margin was 3.23 percentage points below the 11.91% median for the 223 Consumer Discretionary peers that had reported the quarter. The only sequential comparison in the trend was also negative, with margin down from 10.05% in Q1FY27.
Shares fell 7.88% after the results
The stock was down 7.88% at t0, despite opening with a 0.83% gap up. Its relative return was -8.51%, and volume was 2.14 times the reference level.
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 | ₹37 cr | ₹45 cr | -18.88% |
| Other income | ₹0 cr | ₹2 cr | -89.86% |
| Expenses | ₹33 cr | ₹41 cr | -17.64% |
| Operating profit | ₹3 cr | ₹5 cr | -29.96% |
| Operating margin (%) | 8.68% | 10.05% | — |
| Interest | ₹1 cr | ₹1 cr | +16.84% |
| Depreciation | ₹1 cr | ₹0 cr | +116.67% |
| Profit before tax | ₹2 cr | ₹5 cr | -67.53% |
| Tax | ₹1 cr | ₹1 cr | -47.10% |
| Net profit | ₹1 cr | ₹4 cr | -74.50% |
| EPS (₹) | ₹0.22 | ₹0.85 | -74.12% |
Operating margin of 8.68% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.88% | -8.51% |
Volume on the results session was 2.14× its 20-day average.
What to watch
- Whether revenue recovers from Rs 36.65 cr.
- Whether operating margin holds above 8.68%.
- Whether the tax rate moves below 41.35%.