Zodiac Clothing's operating margin slips to -16.70% as costs rise
Revenue fell -2.31% qoq while expenses rose +3.89%, widening the consolidated net loss to Rs 10.92 cr.
Filed 06 Nov 2026, 19:51 IST · after market close · Zodiac Clothing Company Ltd (ZODIACLOTH)
Key takeaways
- Revenue fell 2.31% QoQ while expenses rose 3.89%, pushing operating margin down 6.97 percentage points to -16.70%.
- Consolidated net loss deepened 22.28% QoQ to Rs 10.92 cr as the operating loss widened despite lower interest and depreciation costs.
- Zodiac Clothing's operating margin was 28.09 percentage points below the 11.39% median for 290 Consumer Discretionary peers, ranking it 15th from the bottom.
Price around the results
Higher costs turned a smaller revenue decline into a wider loss
Zodiac Clothing's consolidated revenue declined 2.31% QoQ, but expenses increased 3.89%, so the operating margin contracted by 6.97 percentage points to -16.70%. The operating loss widened from Rs 3.24 cr to Rs 5.43 cr, while the net loss deepened 22.28% to Rs 10.92 cr. Lower interest costs of 2.95% and lower depreciation of 3.47% were not enough to offset the operating deterioration.
Other income partly cushioned the loss but did not change profit quality
Other income rose 1.74% QoQ to Rs 2.34 cr, partly offsetting the operating loss, but profit before tax remained negative at Rs 11.24 cr. Other income represented -20.82% of pre-tax profit because the company was loss-making, so it did not provide a meaningful earnings cushion. The tax rate fell by 1.86 percentage points to 2.86%, but that did not prevent the net loss from widening.
Margin was near the bottom of the reporting peer set
The company's -16.70% operating margin was 28.09 percentage points below the 11.39% median among 290 Consumer Discretionary peers that had reported the quarter. It ranked 15th from the bottom on this measure. With only Q1FY27 available in the supplied trend, the clear direction is a sequential margin decline from -9.73% to -16.70%.
No market reaction was available after the late filing
The consolidated results were filed at 19:51 IST on 06 November 2026, after market close. No post-results stock reaction was available at the time of reporting, so the quarter's market response cannot yet be assessed against the company's history.
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 | ₹33 cr | ₹33 cr | -2.31% |
| Other income | ₹2 cr | ₹2 cr | +1.74% |
| Expenses | ₹38 cr | ₹37 cr | +3.89% |
| Operating profit | ₹-5 cr | ₹-3 cr | -67.59% |
| Operating margin (%) | -16.70% | -9.73% | — |
| Interest | ₹2 cr | ₹2 cr | -2.95% |
| Depreciation | ₹6 cr | ₹6 cr | -3.47% |
| Profit before tax | ₹-11 cr | ₹-9 cr | -19.96% |
| Tax | ₹-0 cr | ₹-0 cr | +27.27% |
| Net profit | ₹-11 cr | ₹-9 cr | -22.28% |
| EPS (₹) | ₹-3.98 | ₹-3.25 | -22.46% |
Operating margin of -16.70% compares with a Consumer Discretionary sector median of 11.39% across 290 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers above Rs 33.31 cr in the next quarter.
- Whether operating margin improves from -16.70% after expenses grew 3.89% QoQ.
- Whether the company continues to rely on other income of around Rs 2.34 cr while pre-tax profit remains negative.