Margin improves, but other income makes up all of pre-tax profit
Revenue grew faster than expenses sequentially, yet interest and depreciation increased and operating margin remained well below the sector median.
Filed 04 Nov 2026, 18:45 IST · after market close · Adroit Infotech Ltd (ADROITINFO)
Key takeaways
- Consolidated revenue increased 1.67% sequentially while expenses rose 0.94%, lifting operating margin by 0.71 percentage points.
- Other income accounted for 100.00% of consolidated profit before tax, making reported profit quality dependent on non-operating income this quarter.
- Operating margin at 8.07% was 10.93 percentage points below the 19.00% median for 58 reported Information Technology peers.
Price around the results
Revenue growth translated into a second quarter of margin improvement
Consolidated revenue grew 1.67% sequentially, while operating profit increased 10.81% and net profit rose 7.94%; EPS remained at Rs 0.12. Expenses grew more slowly than revenue, allowing operating margin to expand from 7.36% to 8.07%. This was the second consecutive quarter of operating-margin improvement, after 3.46% in Q4FY26.
Higher interest and depreciation offset part of the operating gain
Interest expense increased 19.15% sequentially and depreciation rose 23.64%, limiting the conversion of operating profit into pre-tax profit. Other income was Rs 0.89 cr and represented 100.00% of profit before tax, so reported pre-tax profit was entirely supported by that line after operating costs, interest and depreciation. The tax rate was broadly unchanged at 23.02%, up 0.01 percentage points.
Margin remains among the lowest in the reported IT peer set
Adroit Infotech's 8.07% operating margin was 10.93 percentage points below the 19.00% median among 58 Information Technology companies that had reported the same quarter. It ranked ninth from the bottom of that group, despite the sequential improvement from 7.36%.
Results were filed after market close
The consolidated results were filed at 18:45 IST on 4 November 2026, after market close. The immediate stock response is therefore not part of this results readout.
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 | ₹15 cr | ₹15 cr | +1.67% |
| Other income | ₹1 cr | ₹1 cr | +21.92% |
| Expenses | ₹14 cr | ₹14 cr | +0.94% |
| Operating profit | ₹1 cr | ₹1 cr | +10.81% |
| Operating margin (%) | 8.07% | 7.36% | — |
| Interest | ₹1 cr | ₹0 cr | +19.15% |
| Depreciation | ₹1 cr | ₹1 cr | +23.64% |
| Profit before tax | ₹1 cr | ₹1 cr | +8.54% |
| Tax | ₹0 cr | ₹0 cr | +5.26% |
| Net profit | ₹1 cr | ₹1 cr | +7.94% |
| EPS (₹) | ₹0.12 | ₹0.12 | +0.00% |
Operating margin of 8.07% compares with a Information Technology sector median of 19.00% across 58 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 8.07% after two consecutive sequential increases.
- Whether interest expense growth moderates from 19.15% sequentially.
- Whether other income remains responsible for 100.00% of profit before tax.