VIP Industries’ operating margin falls to -7.06% as revenue drops 19.06%
Other income of Rs 55.10 cr narrowed the consolidated net loss, but costs declined slower than revenue and interest expense rose 23.31% QoQ.
Filed 12 Nov 2026, 18:25 IST · after market close · V I P Industries Ltd (VIPIND)
Key takeaways
- Consolidated operating margin fell 5.14 percentage points QoQ to -7.06% as revenue declined 19.06% while expenses fell only 14.98%.
- Net loss narrowed 43.02% QoQ to Rs 30.52 cr, helped by other income of Rs 55.10 cr despite a wider operating loss.
- VIP Industries’ operating margin was 18.29 percentage points below the 11.23% median for 329 Consumer Discretionary peers.
Price around the results
Revenue contraction widened the operating loss
Consolidated revenue fell 19.06% QoQ to Rs 468.12 cr, while the operating loss widened to Rs 33.05 cr from Rs 11.12 cr. The net loss nevertheless narrowed 43.02% to Rs 30.52 cr because other income rose sharply from Rs 4.07 cr to Rs 55.10 cr.
Slower cost reduction and higher interest hurt margins
Expenses declined 14.98% QoQ, slower than revenue, so operating margin contracted 5.14 percentage points to -7.06%. Interest expense increased 23.31% to Rs 19.94 cr, adding to the pressure. Other income represented -194.63% of profit before tax because the pre-tax result remained a loss, making the improvement in net loss dependent on a non-operating offset.
Margin sits well below the reported peer median
VIP Industries’ operating margin of -7.06% was 18.29 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported. It ranked 22nd from the bottom on this measure. Sequentially, margin worsened from -1.92% in Q1FY27, though the available trend covers only one prior quarter.
Results were filed after market close
The consolidated results were filed at 18:25 IST on 12 Nov 2026, after market close. There is no post-results market reaction to assess yet.
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 | ₹468 cr | ₹578 cr | -19.06% |
| Other income | ₹55 cr | ₹4 cr | +1253.81% |
| Expenses | ₹501 cr | ₹589 cr | -14.98% |
| Operating profit | ₹-33 cr | ₹-11 cr | -197.21% |
| Operating margin (%) | -7.06% | -1.92% | — |
| Interest | ₹20 cr | ₹16 cr | +23.31% |
| Depreciation | ₹30 cr | ₹31 cr | -3.21% |
| Profit before tax | ₹-28 cr | ₹-55 cr | +48.20% |
| Tax | ₹2 cr | ₹-1 cr | — |
| Net profit | ₹-31 cr | ₹-54 cr | +43.02% |
| EPS (₹) | ₹-2.15 | ₹-3.77 | +42.97% |
Operating margin of -7.06% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -7.06% after its 5.14-percentage-point QoQ decline.
- Whether revenue recovers from Rs 468.12 cr while expenses remain below Rs 501.17 cr.
- Whether other income remains a material offset after contributing Rs 55.10 cr this quarter.