Margin widens sharply, but interest and other income shape profit
Expenses fell faster than revenue sequentially, but higher interest limited pre-tax profit and other income made up 61.29% of it.
Filed 06 Nov 2026, 11:53 IST · Akash Infraprojects Ltd (AKASH)
Key takeaways
- Operating margin improved by 7.28 percentage points sequentially to 10.93% as expenses fell faster than revenue.
- Net profit rose 36.84% sequentially to Rs 0.26 cr despite interest expense increasing 119.15% to Rs 2.06 cr.
- Other income contributed 61.29% of pre-tax profit, while the tax rate fell 31.66 percentage points to 15.07%.
Price around the results
Revenue fell, but cost control lifted operating margin
Akash Infraprojects reported consolidated revenue of Rs 22.38 cr in Q2FY27, down 42.82% sequentially, while expenses declined 47.15%. Because costs fell faster than revenue, operating margin widened 7.28 percentage points to 10.93%, and operating profit increased 71.33% to Rs 2.45 cr.
Higher interest offset the operating improvement
Interest expense rose 119.15% sequentially to Rs 2.06 cr, absorbing much of the operating-profit gain and leaving pre-tax profit down 13.89% at Rs 0.31 cr. Net profit still increased 36.84% to Rs 0.26 cr, helped by the tax rate falling from 46.73% to 15.07%. Other income was Rs 0.19 cr and accounted for 61.29% of pre-tax profit, making earnings quality an important consideration this quarter.
Margin remained below the Industrials peer median
The company's 10.93% operating margin was 0.57 percentage points below the 11.5% median for 197 Industrials peers that had reported the same quarter. Sequentially, margin improved from 3.65% in Q1FY27; the available trend shows an improvement over the prior quarter but does not establish a longer multi-quarter direction.
Initial market response was modestly positive
The stock was up 0.44% on the results date, with a 0.48% opening gap and volume at 1.37 times the reference level. Its relative performance was -1.57%, but there is no recent post-results history here to judge whether this reaction was typical for the stock.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹22 cr | ₹39 cr | -42.82% |
| Other income | ₹0 cr | ₹0 cr | +35.71% |
| Expenses | ₹20 cr | ₹38 cr | -47.15% |
| Operating profit | ₹2 cr | ₹1 cr | +71.33% |
| Operating margin (%) | 10.93% | 3.65% | — |
| Interest | ₹2 cr | ₹1 cr | +119.15% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹0 cr | ₹0 cr | -13.89% |
| Tax | ₹0 cr | ₹0 cr | -70.59% |
| Net profit | ₹0 cr | ₹0 cr | +36.84% |
| EPS (₹) | ₹0.15 | ₹0.11 | +36.36% |
Operating margin of 10.93% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.44% | -1.57% |
Volume on the results session was 1.37× its 20-day average.
What to watch
- Whether operating margin holds above 10.93% after the Q2FY27 improvement.
- Whether interest expense falls from Rs 2.06 cr or continues to absorb operating profit.
- Whether other income remains below or above its 61.29% share of pre-tax profit.