Shangar Decor (SHANGAR) Profit Soars 556% as Revenue Triples in Q2 FY27
The event decorator's quarterly revenue surged past ₹10 crore, but a sequential margin squeeze hints at rising costs from its expansion.
Shangar Decor's Q2 FY27 saw revenue more than triple year-on-year to ₹10.84 crore, driving a 556% jump in profit. However, profitability softened from the prior quarter as higher operational costs kicked in.
For an event decorator, scale is the ultimate test—can you handle more weddings and corporate galas without your costs running away? Shangar Decor just posted its answer: a resounding yes on the top line, but with a clear warning on the bottom. The company's revenue more than tripled from a year ago, yet profitability softened from the stellar margin it held just a quarter before.
The numbers tell a story of explosive growth meeting rising costs. Revenue jumped to ₹10.84 crore in the September quarter, up 301% from a year ago and doubling sequentially. Profit followed, soaring 556% year-on-year to ₹1.05 crore.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 10.84YoY +301% | 5.28 | 2.70 |
| Profit (₹ Cr) | 1.05YoY +556% | 0.69 | 0.16 |
| Net Profit Margin | 9.7%YoY +59% | 13.1% | 6.1% |
Where the growth came from
ScanX.trade reports the surge was driven by strong momentum in the event management segment. This suggests a broader increase in business volume, likely fuelled by India's booming wedding and corporate events market, rather than just a few large contracts. The company is riding a powerful industry tailwind; Business Belong notes the Indian event management industry is growing at 18-20% annually and is now worth over ₹1.25 lakh crore.
The cost of scaling up
While revenue tripled, expenses kept pace. A report from ScanX.trade highlights a significant increase in depreciation and amortization costs, which rose from ₹65 lakh to ₹177 lakh year-on-year. This points to recent capital expenditures now hitting the income statement. Purchases of stock-in-trade also jumped sharply, indicating higher inventory needs to support the event volume. These rising fixed and working capital costs explain why the net profit margin, though up 360 basis points from last year, contracted from 13.1% in Q1 to 9.7% this quarter.
The outlook from here
Management has not provided explicit financial guidance, according to an analysis by StockFin.ai. However, the board's focus on expanding in the MICE (Meetings, Incentives, Conferences, Exhibitions) market and the reinvestment of all profits—no dividend was declared—signal an intent to fund growth internally. The key question is whether the company can stabilize its margins as it absorbs the costs of its recent expansion. The current valuation reflects a cautious market, with the stock trading at a P/E of 5.5, an 87% discount to the industry average.
Key Points
- Revenue surged 301% year-on-year to ₹10.84 crore, reflecting strong demand in the event decoration segment.
- Net profit jumped 556% to ₹1.05 crore, though the net profit margin fell 340 basis points from the previous quarter.
- Higher depreciation and inventory costs, linked to recent capital expenditure and business volume, are pressuring near-term profitability.
- The company is retaining all earnings, with no dividend declared, to fund its growth in the expanding MICE and events market.
Hexa Perspective
The quarter confirms Shangar Decor is capturing real demand in a high-growth industry. The tension lies in its ability to convert that top-line surge into sustained earnings power. The margin dip shows scaling is costly, and with depreciation charges now embedded, operating leverage may take a few more quarters to materialize fully. Investors are valuing the stock at a deep discount, pricing in both the volatility of its quarterly performance and the execution risk of turning volume into durable profitability.
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