Lovable Lingerie (LOVABLE) Q2 FY27 Profit Halves as Costs Swallow a 270% Revenue Surge
The company's Q2 FY27 revenue soared to ₹33 crore, but a sharp rise in expenses cut net profit by 55% sequentially, leaving margins under pressure.
Lovable Lingerie's September quarter saw a massive revenue jump of 270% year-on-year. However, profit fell 55% from the previous quarter as total expenses surged 167%, squeezing the net profit margin to 4.8%.
For Lovable Lingerie, a quarter of explosive sales growth collided with a steep cost surge, leaving profitability sharply lower. Revenue jumped 270% year-on-year to ₹33.01 crore, the highest in at least three years according to The Economic Times. Yet net profit fell 55% from the previous quarter to ₹1.58 crore.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 33.01 | 12.79 |
| Profit (₹ Cr) | 1.58 | 3.49 |
| Net Profit Margin | 4.8% | 27.3% |
While the top line recovered strongly from a loss-making year-ago quarter, the bottom line weakened significantly. The trailing-twelve-month net profit margin stands at 13.6%, well above the latest quarter's 4.8%.
Where the sales growth went
A massive build-up in inventories was the primary driver behind the revenue spike. The ‘changes in inventories’ line item, which reflects the cost of goods produced but not yet sold, surged to ₹4.8 crore from ₹0.2 crore in the March quarter, according to data from AlphaVe. This suggests the company produced significantly more than it sold, boosting reported revenue but tying up cash in stock.
Other income, a key contributor to profit in the June quarter, collapsed by 85% sequentially to ₹0.41 crore. This removed a cushion that had supported earnings, making the core business performance the sole focus.
The margin squeeze that followed
Total expenses soared 167% quarter-on-quarter to ₹30.8 crore, far outpacing the 158% revenue growth. This was not just about higher sales volume. Employee costs and other expenses rose, while the inventory build-up itself is a cost recorded in the P&L.
The result was a dramatic compression in net profit margin, which fell 2,250 basis points from 27.3% to 4.8%. The company's strategic focus, as noted in its FY26 annual report by StockFin, remains on mass segment expansion and brand diversification to capture India's textile market growth.
A market in transition
India's innerwear market, projected to reach $15.9 billion by 2031, is shifting toward branded and digital sales. This offers growth but also intensifies competition and cost pressures from input prices and labor.
For Lovable, the path forward hinges on converting its production surge into sustained sales without further margin erosion. The stock, down 24% over the past year, trades at a P/E of 38, a discount to the industry average of 45.
Key Points
- Revenue hit a three-year high of ₹33.01 crore, growing 270% year-on-year, driven by a large inventory build-up.
- Net profit fell 55% sequentially to ₹1.58 crore as total expenses surged 167%, collapsing the net margin to 4.8%.
- Other income, a major profit contributor in Q1, fell 85%, removing a key earnings buffer and exposing core margin pressure.
- Management's stated strategy is to expand in the mass segment and diversify brands, aiming for growth in a formalizing market.
Hexa Perspective
This quarter reveals a company pushing for top-line revival at the expense of near-term profitability. The inventory-led revenue pop is not inherently negative if it presages stronger future sales, but the severe margin compression shows costs are not under control.
The disconnect between a 270% revenue jump and a 55% profit drop questions the sustainability of this growth model. Investors are weighing whether this is a necessary investment phase for market share or a sign of deteriorating operational leverage. The next quarter's sales realization and expense trajectory will be critical.
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