Margin expands, but higher tax cuts Q2 net profit
Revenue growth outpaced costs, but a 7.11-point tax-rate increase and negative other income weakened earnings conversion.
Filed 13 Nov 2026, 19:42 IST · after market close · AHLWEST (AHLWEST)
Key takeaways
- Consolidated revenue rose 18.17% qoq, faster than expenses at 14.06%, lifting operating margin by 2.06 percentage points to 42.39%.
- Net profit fell 1.89% qoq even as profit before tax rose 9.22%, as tax increased 34.94% and the tax rate climbed 7.11 percentage points.
- Other income was negative at Rs -3.76 cr and represented -16.79% of pre-tax profit, making it a drag on reported earnings.
Revenue growth lifts operating margin
AHLWEST's consolidated revenue rose 18.17% qoq to Rs 115.46 cr, while expenses grew 14.06%. That gap lifted operating profit 24.24% and expanded operating margin by 2.06 percentage points to 42.39%.
Tax and other income offset operating gains
The operating gain did not flow through to net profit: pre-tax profit grew 9.22%, but net profit declined 1.89% qoq. Tax rose 34.94% as the tax rate climbed 7.11 percentage points to 37.42%; interest and depreciation also increased 5.22% and 6.29%. Other income swung from Rs 2.66 cr in Q1FY27 to Rs -3.76 cr in Q2FY27 and equalled -16.79% of pre-tax profit.
Operating margin moves higher in the two-quarter trend
In the two-quarter trend shown, operating margin increased from 40.33% in Q1FY27 to 42.39% in Q2FY27. EPS moved the other way, declining from Rs 12.26 to Rs 12.03 as the higher tax burden and negative other income offset the operating improvement.
Results filed after market close
The consolidated results were filed after market close on 13 Nov 2026. The stock's immediate post-results reaction is therefore not part of this update.
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 | ₹115 cr | ₹98 cr | +18.17% |
| Other income | ₹-4 cr | ₹3 cr | — |
| Expenses | ₹67 cr | ₹58 cr | +14.06% |
| Operating profit | ₹49 cr | ₹39 cr | +24.24% |
| Operating margin (%) | 42.39% | 40.33% | — |
| Interest | ₹11 cr | ₹11 cr | +5.22% |
| Depreciation | ₹11 cr | ₹11 cr | +6.29% |
| Profit before tax | ₹22 cr | ₹21 cr | +9.22% |
| Tax | ₹8 cr | ₹6 cr | +34.94% |
| Net profit | ₹14 cr | ₹14 cr | -1.89% |
| EPS (₹) | ₹12.03 | ₹12.26 | -1.88% |
What to watch
- Whether operating margin holds above 42.39% after its 2.06-percentage-point qoq rise.
- Whether the tax rate moves from 37.42% after its 7.11-percentage-point qoq increase.
- The direction of other income from Rs -3.76 cr, which represented -16.79% of Q2FY27 pre-tax profit.