Costs surge as Valiant Laboratories’ operating margin falls to 4.43%
Revenue rose 1.28% sequentially, but expenses grew 29.72%, driving a 98.06% fall in consolidated net profit.
Filed 02 Nov 2026, 18:59 IST · after market close · VALIANTLAB (VALIANTLAB)
Key takeaways
- Consolidated operating margin narrowed 20.95 percentage points QoQ to 4.43% as expenses grew 29.72% while revenue rose 1.28%.
- Consolidated net profit fell 98.06% QoQ to Rs 0.41 cr, despite interest expense declining 10.28%.
- Other income contributed 16.42% of pre-tax profit, while the tax rate rose 18.77 percentage points to 38.19%.
Revenue was flat, but the cost base widened sharply
Valiant Laboratories’ consolidated revenue rose 1.28% QoQ, while expenses increased 29.72%, so operating profit fell 82.33%. The mismatch pushed operating margin down 20.95 percentage points to 4.43%.
Lower interest expense did not offset higher depreciation
Interest expense declined 10.28% QoQ, but depreciation rose 27.97%, adding to the pressure below operating profit. Pre-tax profit fell 97.44%, while the tax rate increased 18.77 percentage points to 38.19%, further reducing net profit. Other income accounted for 16.42% of pre-tax profit, so reported profit also included a meaningful non-operating contribution.
Results were filed after market close
The consolidated results were filed after market close, so there is no post-results stock reaction to assess yet. The available quarter-on-quarter trend shows a sharp reversal from the previous quarter’s 25.38% operating margin to 4.43% in Q2FY27.
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 | ₹117 cr | ₹115 cr | +1.28% |
| Other income | ₹0 cr | ₹1 cr | -87.21% |
| Expenses | ₹112 cr | ₹86 cr | +29.72% |
| Operating profit | ₹5 cr | ₹29 cr | -82.33% |
| Operating margin (%) | 4.43% | 25.38% | — |
| Interest | ₹1 cr | ₹1 cr | -10.28% |
| Depreciation | ₹4 cr | ₹3 cr | +27.97% |
| Profit before tax | ₹1 cr | ₹26 cr | -97.44% |
| Tax | ₹0 cr | ₹5 cr | -94.89% |
| Net profit | ₹0 cr | ₹21 cr | -98.06% |
| EPS (₹) | ₹0.08 | ₹3.89 | -97.94% |
What to watch
- Whether operating margin recovers from 4.43%.
- Whether expense growth moderates from 29.72% QoQ.
- Whether the tax rate moves back from 38.19%.