Aaron Industries' profit rose 12.50% QoQ, but costs outpaced sales
Standalone margin slipped 0.18 percentage points as interest expense rose 15.38%; management highlighted 19 EVOQ360 units dispatched.
Filed 30 Oct 2026, 11:34 IST · Aaron Industries Ltd (AARON)
Key takeaways
- Standalone net profit rose +12.50% QoQ to Rs 2.88 cr as revenue grew +10.97%.
- Expenses grew +11.23%, faster than revenue, narrowing operating margin by 0.18 percentage points to 20.01%.
- Operating margin was 8.22 percentage points above the 11.79% median for 62 reported Industrials peers.
Price around the results
Sales growth lifted standalone profit
Revenue grew +10.97% QoQ to Rs 27.12 cr, while operating profit rose +10.14% to Rs 5.43 cr. Profit before tax increased +11.56% to Rs 3.86 cr, and net profit grew faster at +12.50% as the tax rate fell 0.58 percentage points to 25.39%. The lower tax rate therefore provided a modest lift to reported profit.
Higher costs and interest held back margins
Expenses grew +11.23%, outpacing revenue growth and reducing operating margin by 0.18 percentage points QoQ. Interest expense rose +15.38%, while depreciation increased +2.00%, adding pressure below operating profit. Other income was only 1.30% of pre-tax profit, so earnings were not materially dependent on non-operating income.
Margin stayed well above the Industrials peer median
Aaron Industries' 20.01% operating margin was 8.22 percentage points above the 11.79% median among 62 Industrials companies that had reported. Sequentially, however, margin eased from 20.19%, marking a small deterioration despite the revenue increase.
EVOQ360 expansion is progressing without new capex
Management said projected utilisation remains below total capacity, leaving room for growth without further capex. The company said five distributors had been onboarded for EVOQ360 Home Lifts, with more exclusive partnerships in the pipeline. Management also reported 19 EVOQ360 units dispatched in Q2 FY27.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹27 cr | ₹24 cr | +10.97% |
| Other income | ₹0 cr | ₹0 cr | +0.00% |
| Expenses | ₹22 cr | ₹20 cr | +11.23% |
| Operating profit | ₹5 cr | ₹5 cr | +10.14% |
| Operating margin (%) | 20.01% | 20.19% | — |
| Interest | ₹1 cr | ₹1 cr | +15.38% |
| Depreciation | ₹1 cr | ₹1 cr | +2.00% |
| Profit before tax | ₹4 cr | ₹3 cr | +11.56% |
| Tax | ₹1 cr | ₹1 cr | +8.89% |
| Net profit | ₹3 cr | ₹3 cr | +12.50% |
| EPS (₹) | ₹1.37 | ₹1.22 | +12.30% |
Operating margin of 20.01% compares with a Industrials sector median of 11.79% across 62 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.01% | -1.51% |
Volume on the results session was 2.44× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- EVOQ360 Home Lifts had 19 units dispatched in Q2 FY27.
Expansion
- The company has headroom for growth without further capex because projected utilization remains below total capacity.
- Five distributors have been onboarded for EVOQ360 Home Lifts, with additional exclusive distributorships in the pipeline.
What to watch
- Whether operating margin holds above 20.01% after the 0.18 percentage-point sequential decline.
- Whether expense growth falls below the +11.23% QoQ pace against revenue growth of +10.97%.
- EVOQ360 dispatches relative to the 19 units reported in Q2 FY27 and distributor additions beyond five.