Vardhman Polytex returns to operating profit, but other income still dominates
Revenue improved sequentially and costs grew more slowly, but higher interest and sharply lower other income cut profit to Rs 0.73 cr.
Filed 12 Nov 2026, 16:14 IST · after market close · Vardhman Polytex Ltd (VARDMNPOLY)
Key takeaways
- Standalone revenue rose +30.96% QoQ to Rs 79.56 cr, while expenses grew +23.37%, lifting operating margin by 5.92 percentage points to 3.78%.
- Net profit fell -99.77% QoQ to Rs 0.73 cr as other income dropped -98.72% from Rs 317.73 cr to Rs 4.08 cr.
- Other income equalled 558.9% of pre-tax profit, making the Rs 0.73 cr profit dependent on a non-operating item despite a 0.0% tax rate.
Price around the results
Revenue recovery restores operating profit
Vardhman Polytex reported standalone revenue growth of +30.96% QoQ, while expenses increased +23.37%. That wider revenue-cost spread moved operating profit from a loss of Rs 1.30 cr in Q1FY27 to Rs 3.01 cr, and operating margin improved by 5.92 percentage points. The improvement was operational, but the 3.78% margin remained modest.
Other income remains the main profit-quality issue
Other income fell -98.72% QoQ to Rs 4.08 cr from Rs 317.73 cr, driving the -99.77% decline in net profit. It still represented 558.9% of pre-tax profit, while interest expense rose +31.53% to Rs 4.63 cr and absorbed much of the operating profit. The 0.0% tax rate meant net profit matched pre-tax profit, but did not offset the sharp reduction in other income.
Margin remains below the consumer-discretionary median
The company's 3.78% operating margin was 7.45 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. Vardhman Polytex ranked 61 from the bottom on this measure. Sequentially, margin improved from -2.14% in Q1FY27, but the latest quarter still sits below the sector comparison.
Results filed after market close
The company filed these standalone results after market close on 12 Nov 2026. The market had not yet had a trading session to respond to the numbers.
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 | ₹80 cr | ₹61 cr | +30.96% |
| Other income | ₹4 cr | ₹318 cr | -98.72% |
| Expenses | ₹77 cr | ₹62 cr | +23.37% |
| Operating profit | ₹3 cr | ₹-1 cr | — |
| Operating margin (%) | 3.78% | -2.14% | — |
| Interest | ₹5 cr | ₹4 cr | +31.53% |
| Depreciation | ₹2 cr | ₹2 cr | +0.58% |
| Profit before tax | ₹1 cr | ₹311 cr | -99.77% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹1 cr | ₹311 cr | -99.77% |
| EPS (₹) | ₹0.02 | ₹6.44 | -99.69% |
Operating margin of 3.78% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 3.78% after the 5.92 percentage-point QoQ recovery.
- Whether interest expense moves below Rs 4.63 cr after rising +31.53% QoQ.
- Whether other income remains close to Rs 4.08 cr rather than the Rs 317.73 cr recorded in Q1FY27.