Other income outweighed operating profit in Varvee Global’s Q2FY27
The consolidated operating margin was 14.53%, 2.29 percentage points above the sector median, but reported profit relied heavily on non-operating income.
Filed 22 Oct 2026, 16:56 IST · after market close · Varvee Global Ltd (VGL)
Key takeaways
- Core operating profit was Rs 2.85 cr, while Rs 8.07 cr of other income materially lifted reported profit to Rs 6.79 cr.
- Operating margin of 14.53% was 2.25 percentage points above the 12.28% median for 40 reported Consumer Discretionary peers.
- The stock fell 7.44% in the first session after the results, with trading volume at 2.33 times normal.
Price around the results
Reported profit was led by non-operating income
VGL's consolidated Q2FY27 profit was supported more by other income than by its operating business: Rs 8.07 cr of other income compared with Rs 2.85 cr of operating profit. Interest was limited to Rs 0.05 cr and depreciation was Rs 0.56 cr, but the 34.12% tax rate reduced profit after tax to Rs 6.79 cr. The earnings mix therefore gives other income a significant role in the quarter's result.
Operating margin remained above the sector median
VGL reported a 14.53% operating margin, which was 2.25 percentage points above the 12.28% median among 40 Consumer Discretionary peers that had reported the same quarter. With no sequential or year-on-year comparison available, the quarter does not establish whether this margin is improving or weakening over time.
Shares fell sharply after the filing
The consolidated results were filed after market close on 22 October, and the stock fell 7.44% in the following session. Volume was 2.33 times normal, while the gap at the open was limited to -0.32%, indicating that most of the decline came during the session.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹20 cr |
| Other income | ₹8 cr |
| Expenses | ₹17 cr |
| Operating profit | ₹3 cr |
| Operating margin (%) | 14.53% |
| Interest | ₹0 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹10 cr |
| Tax | ₹4 cr |
| Net profit | ₹7 cr |
| EPS (₹) | ₹1.32 |
Operating margin of 14.53% compares with a Consumer Discretionary sector median of 12.28% across 40 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.44% | -7.05% |
Volume on the results session was 2.33× its 20-day average.
What to watch
- Whether operating margin remains above 14.53% in the next reported quarter.
- Whether reported profit continues to rely on other income close to Rs 8.07 cr.
- Whether trading volume remains elevated from the 2.33-times-normal level.