Suryalakshmi's 7.62% margin trails sector median as interest weighs
Standalone operating profit of Rs 18.14 cr was reduced by interest, depreciation and negative other income, leaving net profit at Rs 2.55 cr.
Filed 12 Nov 2026, 16:46 IST · after market close · Suryalakshmi Cotton Mills Ltd (SURYALAXMI)
Key takeaways
- Standalone operating margin was 7.62%, 3.61 percentage points below the 11.23% median for 329 Consumer Discretionary peers.
- Interest of Rs 8.12 cr and depreciation of Rs 4.71 cr reduced operating profit of Rs 18.14 cr to profit before tax of Rs 3.96 cr.
- Negative other income of Rs 1.36 cr and a 35.6% tax rate left standalone net profit at Rs 2.55 cr.
Price around the results
Operating earnings did not translate into much pre-tax profit
Suryalakshmi reported standalone revenue of Rs 238 cr and operating profit of Rs 18.14 cr, implying a 7.62% operating margin. The Rs 8.12 cr interest charge and Rs 4.71 cr depreciation expense absorbed much of that operating profit, leaving profit before tax at Rs 3.96 cr. Results were filed after market close.
Negative other income further reduced profit quality
Other income was negative at Rs 1.36 cr, adding to the gap between operating profit and profit before tax rather than supporting reported earnings. After tax of Rs 1.41 cr at a 35.6% tax rate, standalone net profit was Rs 2.55 cr and EPS was Rs 1.36.
Margin sits below the reported peer median
The company's 7.62% operating margin was 3.61 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. With no sequential, year-on-year or reaction history in this release, the quarter's margin position is the clearest available comparison.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹238 cr |
| Other income | ₹-1 cr |
| Expenses | ₹220 cr |
| Operating profit | ₹18 cr |
| Operating margin (%) | 7.62% |
| Interest | ₹8 cr |
| Depreciation | ₹5 cr |
| Profit before tax | ₹4 cr |
| Tax | ₹1 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹1.36 |
Operating margin of 7.62% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin moves above or below 7.62% next quarter.
- Whether interest remains near Rs 8.12 cr as operating profit changes.
- Whether other income moves up from negative Rs 1.36 cr.