Margin improves as expenses fall faster, but tax rate cuts profit
Consolidated revenue fell 27.25% QoQ, while a 16.84-point rise in the tax rate drove net profit down 40.00%.
Filed 29 Oct 2026, 17:40 IST · after market close · Symphony Ltd (SYMPHONY)
Key takeaways
- Consolidated operating margin improved 0.92 percentage points QoQ to 13.09% as expenses fell 28.01%, faster than revenue at -27.25%.
- Net profit fell -40.00% QoQ to Rs 24 cr as the tax rate rose 16.84 percentage points to 36.84%.
- Other income contributed 23.68% of pre-tax profit, so the Rs 38 cr PBT was not entirely operational.
Price around the results
Revenue fell sharply from Q1FY27
Consolidated revenue fell 27.25% QoQ to Rs 275 cr, while operating profit declined 21.74% to Rs 36 cr. The smaller fall in operating profit than revenue reflects the improvement in operating margin to 13.09% from 12.17% in Q1FY27. This was a sequential comparison; no year-on-year comparison is available here.
Lower costs supported the operating margin
Expenses fell 28.01% QoQ, slightly faster than the 27.25% decline in revenue, lifting operating margin by 0.92 percentage points. Interest expense fell 66.67%, while depreciation was unchanged. The cost reduction therefore provided some protection to operating profit despite the revenue decline.
Higher tax rate and other income shaped PBT
The tax rate rose to 36.84% from 20.00% in Q1FY27, a 16.84 percentage-point increase that contributed to the 40.00% fall in net profit. Other income of Rs 9 cr accounted for 23.68% of PBT, making it a material part of pre-tax earnings. Profit quality was therefore affected both by the higher tax charge and by non-operating income supporting PBT.
Margin was just above the consumer discretionary median
Symphony's 13.09% operating margin was 0.35 percentage points above the 12.74% median for the 107 Consumer Discretionary peers that had reported. The company filed these consolidated results at 17:40 IST after market close, so there is no post-result stock reaction to assess yet.
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 | ₹275 cr | ₹378 cr | -27.25% |
| Other income | ₹9 cr | ₹13 cr | -30.77% |
| Expenses | ₹239 cr | ₹332 cr | -28.01% |
| Operating profit | ₹36 cr | ₹46 cr | -21.74% |
| Operating margin (%) | 13.09% | 12.17% | — |
| Interest | ₹1 cr | ₹3 cr | -66.67% |
| Depreciation | ₹6 cr | ₹6 cr | +0.00% |
| Profit before tax | ₹38 cr | ₹50 cr | -24.00% |
| Tax | ₹14 cr | ₹10 cr | +40.00% |
| Net profit | ₹24 cr | ₹40 cr | -40.00% |
| EPS (₹) | ₹3.56 | ₹5.77 | -38.30% |
Operating margin of 13.09% compares with a Consumer Discretionary sector median of 12.74% across 107 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 275 cr without operating margin falling below 13.09%.
- Whether the tax rate moves away from 36.84%, compared with 20.00% in Q1FY27.
- Whether other income remains a material contributor after accounting for 23.68% of PBT this quarter.