Profit surged on other income as operating margin fell 2.53 points
Revenue rose 12.63% QoQ, but expenses grew 15.81%; the 8.07% margin sat 4.95 points below the sector median.
Filed 29 Oct 2026, 00:32 IST · Vaibhav Global Ltd (VAIBHAVGBL)
Key takeaways
- Standalone net profit jumped 459.64% QoQ to Rs 74.32 cr, but other income accounted for 85.52% of pre-tax profit.
- Revenue grew 12.63% QoQ while expenses rose 15.81%, cutting operating margin by 2.53 percentage points to 8.07%.
- Vaibhav Global's 8.07% operating margin was 4.95 percentage points below the 13.02% median of 84 reporting Consumer Discretionary peers.
Price around the results
Other income drove the standalone profit surge
The 459.64% QoQ increase in standalone net profit was primarily a quality issue: other income contributed 85.52% of pre-tax profit. The tax rate fell 32.26 percentage points from 26.05% to -6.21%, adding to the reported profit increase.
Costs grew faster than revenue in Q2FY27
Revenue increased 12.63% QoQ, but expenses rose 15.81%, causing operating profit to decline 14.20% and operating margin to contract 2.53 percentage points. Interest expense also increased 24.26%, although that pressure came below the operating line.
Operating margin remained below the peer median
The 8.07% operating margin was 4.95 percentage points below the 13.02% median for 84 Consumer Discretionary peers that had reported. Margin also fell from 10.60% in Q1FY27, putting the near-term direction lower.
Management is expanding brands and digital acquisition
Management said revenue is targeted at Rs 5,000-5,500 cr by FY30 and that in-house brands are targeted to exceed 60% of B2C revenue by FY27, from 48.8%. The presentation said the company is using Meta and TikTok for customer acquisition, has moved its channel websites to Shopify, and is scaling AI for product scheduling, content, SEO, demand forecasting and personalisation. Ideal World launched 117 new products during Q2.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹177 cr | ₹158 cr | +12.63% |
| Other income | ₹60 cr | ₹5 cr | +1106.45% |
| Expenses | ₹163 cr | ₹141 cr | +15.81% |
| Operating profit | ₹14 cr | ₹17 cr | -14.20% |
| Operating margin (%) | 8.07% | 10.60% | — |
| Interest | ₹2 cr | ₹2 cr | +24.26% |
| Depreciation | ₹2 cr | ₹2 cr | +3.48% |
| Profit before tax | ₹70 cr | ₹18 cr | +289.59% |
| Tax | ₹-4 cr | ₹5 cr | — |
| Net profit | ₹74 cr | ₹13 cr | +459.64% |
| EPS (₹) | ₹4.44 | ₹0.79 | +462.03% |
Operating margin of 8.07% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -15.72% | -16.77% |
| Next session | -15.91% | — |
Volume on the results session was 12.87× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Ideal World launched 117 new products during Q2.
Guidance & outlook
- Revenue is targeted at ₹5,000–5,500 crore by FY30.
- In-house brands are targeted to reach over 60% of B2C revenue by FY27.
New initiatives
- The company is using Meta and TikTok marketing to broaden customer acquisition.
- All channel websites have been moved to Shopify as a D2C-first platform.
- An AI product-scheduling tool is now in production.
- Generative AI is being scaled for content and SEO.
- The company is investing in demand forecasting and personalisation.
What to watch
- Whether operating margin recovers from 8.07% after falling 2.53 percentage points QoQ.
- Whether other income remains a material contributor after accounting for 85.52% of pre-tax profit.
- Progress toward management's stated target of more than 60% in-house-brand share of B2C revenue by FY27.