Lower costs lift AKI to a positive operating margin
Revenue fell 14.29% QoQ, but a lower tax rate and other income drove net profit up 78.43%.
Filed 06 Nov 2026, 19:04 IST · after market close · AKI (AKI)
Key takeaways
- Consolidated net profit rose 78.43% sequentially to Rs 0.91 cr even as revenue fell 14.29%.
- Operating margin improved by 0.89 percentage points to 0.77% as expenses fell 15.06%, faster than revenue.
- Other income contributed 178.22% of pre-tax profit, while the tax rate fell 19.78 percentage points to 9.72%.
Lower costs supported a modest operating recovery
AKI's consolidated revenue declined 14.29% sequentially to Rs 24.89 cr, while expenses fell 15.06% to Rs 24.70 cr. Because costs declined faster than revenue, operating margin recovered by 0.89 percentage points from -0.12% to 0.77%. The improvement came despite a 14.29% contraction in sales.
Reported profit was driven mainly below operating level
Operating profit was only Rs 0.19 cr, while other income of Rs 1.80 cr represented 178.22% of pre-tax profit. That makes the Rs 0.91 cr net profit less reflective of operating earnings this quarter. The tax rate also fell from 29.50% to 9.72%, helping net profit rise 78.43% sequentially despite the revenue decline.
Margin moved up from the previous quarter, with no market reaction yet
The available quarter trend shows operating margin moving from -0.12% in Q1FY27 to 0.77% in Q2FY27, reversing the prior quarter's negative margin. Interest declined 2.04% sequentially, while depreciation rose 4.17%. The consolidated results were filed after market close, so there is no reported stock reaction yet.
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 | ₹25 cr | ₹29 cr | -14.29% |
| Other income | ₹2 cr | ₹2 cr | +4.05% |
| Expenses | ₹25 cr | ₹29 cr | -15.06% |
| Operating profit | ₹0 cr | ₹-0 cr | — |
| Operating margin (%) | 0.77% | -0.12% | — |
| Interest | ₹0 cr | ₹0 cr | -2.04% |
| Depreciation | ₹1 cr | ₹0 cr | +4.17% |
| Profit before tax | ₹1 cr | ₹1 cr | +40.28% |
| Tax | ₹0 cr | ₹0 cr | -52.38% |
| Net profit | ₹1 cr | ₹1 cr | +78.43% |
| EPS (₹) | ₹0.04 | ₹0.05 | -20.00% |
What to watch
- Whether operating margin holds above 0.77% after its 0.89-percentage-point sequential recovery.
- Whether other income's 178.22% contribution to pre-tax profit declines.
- Whether the tax rate remains near 9.72% after its 19.78-percentage-point sequential fall.