Sreeleathers Limited Q2 profit rises 14.8% to ₹9.88 crore

Sreeleathers Limited reported a 14.8% year-on-year increase in Q2 FY27 net profit to ₹9.88 crore for the quarter ended September 30, 2026, supported by an 11.3% rise in revenue from operations to ₹83.16 crore and a 40-basis-point expansion in net margin.

What did Sreeleathers report for Q2 FY27?

Sreeleathers reported standalone revenue from operations of ₹83.16 crore and net profit of ₹9.88 crore in Q2 FY27. The company filed its unaudited results with the NSE on November 13, 2026, after its board considered and approved the quarterly and half-year financial statements ended September 30, 2026.

Revenue grew from ₹74.71 crore in Q2 FY26, while net profit rose from ₹8.61 crore in the corresponding quarter a year earlier. Earnings per share increased to ₹4.27 from ₹3.72. The results do not include consolidated financial statements, as the filing was on a standalone basis.

The quarter also marked a sharp improvement over Q1 FY27. Revenue from operations was 39.5% higher than ₹59.63 crore in the June 2026 quarter, while net profit rose 41.4% from ₹6.99 crore. The comparison indicates that the September quarter accounted for a substantially higher level of business than the preceding quarter.

How did revenue, profit and margins change?

Sreeleathers improved both operating and net profitability during Q2 FY27. Operating profit, calculated from the filing, increased 13.6% year on year to ₹13.27 crore, while operating margin rose to 16.0% from 15.6% in Q2 FY26.

Total income stood at ₹83.57 crore, up 11.5% from ₹74.96 crore a year earlier. Total expenses increased 10.8% to ₹70.32 crore. As expenses grew at a marginally slower pace than total income, the operating margin improved by 40 basis points year on year.

Net margin reached 11.9%, compared with 11.5% in Q2 FY26. On a sequential basis, operating margin improved by 110 basis points from 14.9% in Q1 FY27, while net margin rose by 20 basis points from 11.7%. Other income declined sequentially to ₹0.41 crore from ₹0.80 crore, but was above ₹0.24 crore reported a year earlier.

What did the board and auditor state?

Sreeleathers' board approved the unaudited standalone financial results for Q2 FY27 and the half year ended September 30, 2026. The company had earlier scheduled its board meeting for November 13 to consider these results.

The auditor's limited review of the standalone financial information did not report an adverse conclusion, according to the results summary. This is relevant because limited review procedures accompany unaudited quarterly disclosures and provide investors with an external review of the reported financial information.

No exceptional item was reported for Q2 FY27. The disclosures also refer to an exceptional item of ₹0.06 crore for FY26, but it did not affect the reported Q2 FY27 quarter. Profit before tax for the latest quarter was ₹13.25 crore, up 15.2% from ₹11.50 crore a year earlier, while tax expense rose 16.6% to ₹3.38 crore.

Why do the sequential numbers matter for investors?

Sreeleathers' sequential performance matters because the company delivered materially higher revenue and profit after the June quarter. The ₹23.54 crore increase in revenue from Q1 FY27 to Q2 FY27 was accompanied by a ₹4.37 crore increase in operating profit and a ₹2.89 crore increase in net profit.

The Q1 FY27 base had already shown growth, with revenue of ₹59.63 crore, up 19.7% year on year, and net profit of ₹6.99 crore, up 138.6% year on year. Q2 FY27 therefore extends the reported improvement in sales and profitability, although the year-on-year growth rate in profit was lower than the June quarter's percentage growth due to a higher comparison base.

For shareholders, the key reported indicators are the expansion in revenue, the 40-basis-point year-on-year improvement in both operating and net margins, and the rise in EPS to ₹4.27. The filing does not provide a share-price movement or management outlook, so the results primarily offer a financial update rather than a forecast of future performance.

What should investors monitor after the Q2 FY27 filing?

Sreeleathers' next disclosed earnings event is the Q3 FY27 results release, scheduled for February 15, 2027. Investors may track whether revenue growth remains above the Q2 FY27 year-on-year rate of 11.3% and whether operating margin sustains the reported 16.0% level.

The pace of expenses will also remain relevant. In Q2 FY27, total expenses rose 10.8% year on year, below the 11.5% increase in total income. That relationship supported margin improvement during the quarter and is a measurable factor in future profitability disclosures.

Conclusion

Sreeleathers delivered higher standalone revenue, operating profit and net profit in Q2 FY27. Revenue from operations reached ₹83.16 crore, while net profit rose to ₹9.88 crore, with both operating and net margins improving by 40 basis points from the year-earlier quarter.

The next scheduled disclosure is the Q3 FY27 earnings release on February 15, 2027. Investors will watch the company's reported sales growth, expense trend, margin movement and EPS after the strong sequential increase recorded in the September quarter.