Expenses and interest outpaced revenue growth at Akme Fintrade
Revenue rose +9.05% QoQ, but operating margin fell 1.00 percentage point as expenses and interest grew faster.
Filed 30 Oct 2026, 19:20 IST · after market close · Akme Fintrade (India) Ltd (AFIL)
Key takeaways
- Standalone net profit rose +3.11% QoQ to Rs 11.93 cr, while interest expense increased +11.60%.
- Operating margin narrowed by 1.00 percentage point because expenses grew +13.69%, faster than revenue at +9.05%.
- Akme Fintrade's 75.33% operating margin was 18.03 percentage points above the 57.30% median for 66 Financial Services peers.
Price around the results
Revenue growth did not fully reach profit
On a standalone basis, revenue rose to Rs 45.44 cr from Rs 41.67 cr in Q1FY27, but operating profit increased only +7.61% to Rs 34.23 cr. Net profit grew +3.11% to Rs 11.93 cr as interest expense rose faster than operating profit. Other income contributed just 0.48% of pre-tax profit, so reported earnings were driven mainly by operations and financing income.
Costs and interest narrowed the margin
Expenses grew +13.69% QoQ, outpacing the +9.05% increase in revenue and reducing operating margin by 1.00 percentage point to 75.33%. Interest expense increased +11.60% to Rs 19.53 cr, putting further pressure below the operating-profit line. The tax rate fell by 0.49 percentage points to 17.69%, which provided a modest lift to net profit; tax expense remained at Rs 2.57 cr.
Margin remains above the reported peer median
Akme Fintrade's 75.33% operating margin was 18.03 percentage points above the 57.30% median among 66 Financial Services companies that had reported the same quarter. The sequential direction was weaker, however, with margin declining from 76.33% in Q1FY27. The available quarter-on-quarter trend therefore points to a second-quarter margin reduction rather than expansion.
Results were filed after market close
The company filed these standalone results after market close on 30 Oct 2026. The filing timing means this note does not assess a post-results share-price reaction.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹45 cr | ₹42 cr | +9.05% |
| Other income | ₹0 cr | ₹0 cr | -30.00% |
| Expenses | ₹11 cr | ₹10 cr | +13.69% |
| Operating profit | ₹34 cr | ₹32 cr | +7.61% |
| Operating margin (%) | 75.33% | 76.33% | — |
| Interest | ₹20 cr | ₹18 cr | +11.60% |
| Depreciation | ₹0 cr | ₹0 cr | +3.85% |
| Profit before tax | ₹15 cr | ₹14 cr | +2.47% |
| Tax | ₹3 cr | ₹3 cr | +0.00% |
| Net profit | ₹12 cr | ₹12 cr | +3.11% |
| EPS (₹) | ₹0.27 | ₹0.27 | +0.00% |
Operating margin of 75.33% compares with a Financial Services sector median of 57.30% across 66 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 75.33% next quarter.
- Whether expense growth falls below the current +13.69% QoQ rate.
- Whether interest growth moderates from +11.60% QoQ.