VTM's margin improves, but remains below its sector
Positive other income helped profit, while the 7.07% operating margin remained below the 11.58% peer median.
Filed 05 Nov 2026, 15:05 IST · VTM Ltd (VTMLTD)
Key takeaways
- Standalone operating margin improved from 6.61% in Q4FY26 to 7.07% in Q2FY27 despite lower revenue of Rs 98.17 cr.
- Positive other income of Rs 1.14 cr supported profit before tax of Rs 3.63 cr, while interest and depreciation were Rs 0.86 cr and Rs 3.59 cr.
- VTM's 7.07% operating margin was 4.51 percentage points below the 11.58% median for 265 Consumer Discretionary peers.
Price around the results
Margin improved despite lower revenue
VTM reported standalone revenue of Rs 98.17 cr, below the Rs 110.17 cr recorded in Q4FY26, but operating margin moved up from 6.61% to 7.07%. The improvement indicates that expenses were better contained relative to revenue than in the previous reported quarter.
Other income supported reported profit
Other income moved from negative Rs 2.51 cr in Q4FY26 to positive Rs 1.14 cr, supporting profit before tax of Rs 3.63 cr. Interest increased from Rs 0.58 cr to Rs 0.86 cr, while depreciation rose from Rs 2.87 cr to Rs 3.59 cr, limiting the conversion of operating profit into pre-tax profit. The earnings contribution from other income makes profit quality an important point to track.
Operating margin trails 265-sector peer set
VTM's 7.07% operating margin was 4.51 percentage points below the 11.58% median among 265 Consumer Discretionary companies that had reported the same quarter. The company ranked 69th from the bottom, leaving profitability below the sector comparison despite the sequential margin improvement.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹98 cr |
| Other income | ₹1 cr |
| Expenses | ₹91 cr |
| Operating profit | ₹7 cr |
| Operating margin (%) | 7.07% |
| Interest | ₹1 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹4 cr |
| Tax | ₹1 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹0.29 |
Operating margin of 7.07% compares with a Consumer Discretionary sector median of 11.58% across 265 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.76% | -2.77% |
Volume on the results session was 0.08× its 20-day average.
What to watch
- Whether operating margin holds above 7.07% after rising from 6.61% in Q4FY26.
- Whether other income remains positive after Rs 1.14 cr in Q2FY27 versus negative Rs 2.51 cr in Q4FY26.
- Whether the 4.51-percentage-point gap to the 11.58% sector median narrows.