Revenue rose 17.93%, but Sundaram Clayton remained loss-making
Slower expense growth improved operating margin, but depreciation, interest and tax expense kept consolidated net loss at Rs 50.77 cr.
Filed 04 Nov 2026, 12:59 IST · Sundaram Clayton Ltd (SUNCLAY)
Key takeaways
- Consolidated revenue grew 17.93% QoQ while expenses rose 14.77%, lifting operating margin by 2.63 percentage points to 4.64%.
- Depreciation of Rs 48.79 cr and interest of Rs 22.93 cr kept profit before tax in a loss of Rs 36.85 cr.
- The 4.64% operating margin was 7.27 percentage points below the 11.91% median for 223 Consumer Discretionary peers.
Price around the results
Revenue growth improved the operating result
Consolidated revenue grew 17.93% QoQ, ahead of the 14.77% rise in expenses, so operating profit increased 171.62% and operating margin widened by 2.63 percentage points. The improvement was not enough to restore profitability: net loss narrowed 14.43% to Rs 50.77 cr from Rs 59.33 cr in Q1FY27. There is no year-on-year comparison in this quarter's disclosure.
Depreciation and interest continued to absorb operating profit
Depreciation of Rs 48.79 cr exceeded operating profit of Rs 32.35 cr, while interest expense rose 8.83% QoQ to Rs 22.93 cr. Other income represented a -6.84% share of profit before tax, so it did not support reported earnings. Tax expense was Rs 13.92 cr despite a pretax loss, and the tax rate moved down by 26.02 percentage points to -37.77%.
Margin remained below the reported peer median
Sundaram Clayton's 4.64% operating margin was 7.27 percentage points below the 11.91% median among 223 Consumer Discretionary companies that had reported the quarter. The available quarterly trend shows a 2.63-percentage-point recovery from Q1FY27's 2.01%, but the business remained loss-making after financing and depreciation costs.
The stock rose modestly on the filing day
The stock gained 0.68% on the results date, with a market-relative move of 0.05%. Trading volume was 4.34 times the reference level, indicating elevated activity alongside the limited price move.
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 | ₹698 cr | ₹592 cr | +17.93% |
| Other income | ₹3 cr | ₹4 cr | -34.72% |
| Expenses | ₹665 cr | ₹580 cr | +14.77% |
| Operating profit | ₹32 cr | ₹12 cr | +171.62% |
| Operating margin (%) | 4.64% | 2.01% | — |
| Interest | ₹23 cr | ₹21 cr | +8.83% |
| Depreciation | ₹49 cr | ₹48 cr | +2.09% |
| Profit before tax | ₹-37 cr | ₹-53 cr | +30.59% |
| Tax | ₹14 cr | ₹6 cr | +123.08% |
| Net profit | ₹-51 cr | ₹-59 cr | +14.43% |
| EPS (₹) | ₹-23.03 | ₹-26.91 | +14.42% |
Operating margin of 4.64% 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 | +0.68% | +0.05% |
Volume on the results session was 4.34× its 20-day average.
What to watch
- Whether operating margin holds above 4.64% as revenue growth remains ahead of expense growth.
- Whether depreciation stays below or above operating profit of Rs 32.35 cr.
- Whether the net loss narrows further from Rs 50.77 cr while interest remains near Rs 22.93 cr.