Revenue slump cuts Vadilal Industries' operating margin to 18.12%
Consolidated revenue fell 31.98% QoQ while expenses fell 26.30%, and shares declined 2.64% on the results day.
Filed 30 Oct 2026, 15:28 IST · Vadilal Industries Ltd (VADILALIND)
Key takeaways
- Sequential revenue fell -31.98% while expenses fell only -26.30%, pushing operating margin down 6.32 percentage points to 18.12%.
- Other income contributed 10.99% of pre-tax profit, making it a meaningful part of reported earnings.
- The stock fell -2.64% on results day even though Vadilal's 18.12% operating margin was 5.65 percentage points above the 12.47% sector median.
Price around the results
Q2FY27 revenue decline drove operating deleverage
Vadilal Industries' consolidated revenue dropped -31.98% sequentially, while operating profit fell -49.57% and net profit fell -58.12%. The sharper decline in profit than revenue shows the pressure from lower operating scale in the quarter.
Costs outpaced revenue and narrowed the margin
Expenses declined -26.30%, less than the -31.98% fall in revenue, so operating margin narrowed by 6.32 percentage points. Interest expense fell -2.48% and the tax rate rose only 0.10 percentage points, leaving operating performance as the main driver of the profit decline. Other income accounted for 10.99% of pre-tax profit, so it was a meaningful contributor to reported earnings.
Margin remains above the reported peer median
The 18.12% operating margin was 5.65 percentage points above the 12.47% median for 29 Fast Moving Consumer Goods peers that had reported the quarter. Sequentially, however, margin fell from 24.44% in Q1FY27, extending the quarter-on-quarter deterioration visible in the available trend.
Shares fell 2.64% after the results
The stock declined -2.64% on the results date after opening with a +0.13% gap. Its relative performance was -3.15%, with trading volume at 1.82 times the reference level.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹463 cr | ₹680 cr | -31.98% |
| Other income | ₹8 cr | ₹27 cr | -70.64% |
| Expenses | ₹379 cr | ₹514 cr | -26.30% |
| Operating profit | ₹84 cr | ₹166 cr | -49.57% |
| Operating margin (%) | 18.12% | 24.44% | — |
| Interest | ₹4 cr | ₹4 cr | -2.48% |
| Depreciation | ₹15 cr | ₹15 cr | -4.43% |
| Profit before tax | ₹73 cr | ₹174 cr | -58.07% |
| Tax | ₹18 cr | ₹43 cr | -57.90% |
| Net profit | ₹55 cr | ₹131 cr | -58.12% |
| EPS (₹) | ₹76.27 | ₹182.13 | -58.12% |
Operating margin of 18.12% compares with a Fast Moving Consumer Goods sector median of 12.47% across 29 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.64% | -3.15% |
Volume on the results session was 1.82× its 20-day average.
What to watch
- Whether operating margin recovers from 18.12% after the 6.32 percentage-point sequential decline.
- Whether expenses continue to fall more slowly than revenue, against the latest -26.30% versus -31.98% comparison.
- Whether other income remains a meaningful contributor after accounting for 10.99% of pre-tax profit.