Margin expands for a third straight quarter as costs lag revenue
Consolidated operating margin rose 1.08 percentage points QoQ, but interest costs jumped +25.79% and other income supplied 15.17% of pre-tax profit.
Filed 04 Nov 2026, 00:04 IST · Arisinfra Solutions Ltd (ARIS)
Key takeaways
- Consolidated revenue rose +5.81% QoQ while expenses grew +4.54%, lifting operating margin by 1.08 percentage points to 11.58%.
- Net profit increased +13.98% QoQ despite a +25.79% rise in interest costs, helped by a 0.51 percentage-point lower tax rate.
- Other income contributed 15.17% of pre-tax profit, while operating margin remained 2.26 percentage points below the 13.84% median for 93 reported commodities peers.
Price around the results
Revenue growth outpaced expenses in Q2FY27
On a consolidated basis, revenue grew +5.81% QoQ, ahead of the +4.54% rise in expenses. That operating leverage helped operating profit increase +16.63%, faster than sales. The result was a 1.08 percentage-point expansion in operating margin to 11.58%.
Higher interest costs partly offset operating gains
Interest expense rose +25.79% QoQ, outpacing the +13.20% increase in pre-tax profit and limiting the conversion of operating gains into profit before tax. The tax rate fell by 0.51 percentage points to 24.37%, which also supported the +13.98% growth in net profit. Other income accounted for 15.17% of pre-tax profit, making it a material contributor to reported earnings.
Operating margin has improved for three consecutive quarters
The operating margin moved from 8.87% in Q4FY26 to 10.50% in Q1FY27 and 11.58% in Q2FY27, marking a third straight quarterly expansion. Even so, Arisinfra's margin was 2.26 percentage points below the 13.84% median among 93 commodities peers that had reported the quarter. The comparison points to continued distance from sector-level operating profitability despite the recent internal improvement.
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 | ₹308 cr | ₹291 cr | +5.81% |
| Other income | ₹5 cr | ₹4 cr | +4.57% |
| Expenses | ₹272 cr | ₹260 cr | +4.54% |
| Operating profit | ₹36 cr | ₹31 cr | +16.63% |
| Operating margin (%) | 11.58% | 10.50% | — |
| Interest | ₹8 cr | ₹6 cr | +25.79% |
| Depreciation | ₹2 cr | ₹2 cr | +6.84% |
| Profit before tax | ₹30 cr | ₹27 cr | +13.20% |
| Tax | ₹7 cr | ₹7 cr | +10.84% |
| Net profit | ₹23 cr | ₹20 cr | +13.98% |
| EPS (₹) | ₹2.53 | ₹2.05 | +23.41% |
Operating margin of 11.58% compares with a Commodities sector median of 13.84% across 93 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 11.58% after its third consecutive quarterly expansion.
- Whether interest expense moderates after rising +25.79% QoQ.
- Whether other income's contribution to pre-tax profit moves from the current 15.17%.