ARMEE slips into a Rs 2.10 cr loss despite a wider operating margin
Revenue fell 73.44% QoQ, while higher interest and negative other income erased the Rs 5.60 cr operating profit.
Filed 05 Nov 2026, 20:26 IST · after market close · ARMEE (ARMEE)
Key takeaways
- ARMEE's consolidated revenue fell 73.44% QoQ to Rs 73.26 cr, but operating margin widened 5.12 percentage points to 7.64% as expenses fell faster than revenue.
- Higher interest expense, up 23.70% QoQ, and negative other income of Rs 2.37 cr pushed ARMEE into a consolidated net loss of Rs 2.10 cr.
- The tax rate fell 10.59 percentage points to 17.33%, but the tax benefit of Rs 0.44 cr only partly cushioned the loss.
Revenue contracted sharply, but operating margin improved
Consolidated revenue fell 73.44% QoQ, while expenses declined 74.83%, allowing operating margin to widen by 5.12 percentage points to 7.64%. The margin improvement did not prevent operating profit from falling 19.42% to Rs 5.60 cr because the revenue decline was much larger. Compared with Q1FY27, operating margin moved up from 2.52% to 7.64%.
Interest and negative other income wiped out operating profit
Interest expense rose 23.70% QoQ to Rs 4.28 cr, while depreciation increased 15.50% to Rs 1.49 cr. Other income turned negative at Rs 2.37 cr from Rs 0.32 cr, and the combination pushed profit before tax from Rs 2.52 cr to a loss of Rs 2.54 cr. The negative other-income line represented 93.31% of pre-tax profit on the reported measure, making earnings quality below operating profit particularly weak.
The filing came after market close
ARMEE's consolidated results were filed after market close, so there is no immediate stock reaction to assess in this update. The quarter marks a sharp QoQ change from a Rs 1.82 cr net profit to a Rs 2.10 cr net loss, despite the improvement in operating margin. EPS moved from Rs 0.76 to -Rs 0.88.
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 | ₹73 cr | ₹276 cr | -73.44% |
| Other income | ₹-2 cr | ₹0 cr | — |
| Expenses | ₹68 cr | ₹269 cr | -74.83% |
| Operating profit | ₹6 cr | ₹7 cr | -19.42% |
| Operating margin (%) | 7.64% | 2.52% | — |
| Interest | ₹4 cr | ₹3 cr | +23.70% |
| Depreciation | ₹1 cr | ₹1 cr | +15.50% |
| Profit before tax | ₹-3 cr | ₹3 cr | — |
| Tax | ₹-0 cr | ₹1 cr | — |
| Net profit | ₹-2 cr | ₹2 cr | — |
| EPS (₹) | ₹-0.88 | ₹0.76 | — |
What to watch
- Whether operating margin remains above 7.64% as revenue moves from Rs 73.26 cr.
- Whether interest expense falls from Rs 4.28 cr after rising 23.70% QoQ.
- Whether other income turns positive from -Rs 2.37 cr and profit before tax moves back above zero.