ASK Automotive margin slips as costs outpace revenue growth
Standalone revenue rose 9.88% sequentially, but faster expense growth pulled operating margin down 0.77 percentage points to 8.47%.
Filed 03 Nov 2026, 15:55 IST · after market close · ASK Automotive Ltd (ASKAUTOLTD)
Key takeaways
- Revenue grew 9.88% sequentially, but expenses rose faster at 10.81%, narrowing operating margin by 0.77 percentage points.
- Net profit increased only 2.62% sequentially as other income contributed 15.12% of pre-tax profit, while the tax rate fell 0.63 percentage points.
- ASK Automotive's 8.47% operating margin was 3.88 percentage points below the 12.35% median for 159 Consumer Discretionary peers.
Price around the results
Revenue growth did not translate into operating profit growth
These standalone results show revenue rising 9.88% sequentially, while operating profit increased only 0.71%. The gap reflects expenses growing 10.81%, faster than revenue, leaving net profit up 2.62% despite a 13.91% fall in interest costs.
Lower tax and other income supported reported profit
The faster increase in costs reduced operating margin by 0.77 percentage points from Q1FY27. Other income accounted for 15.12% of pre-tax profit, so reported earnings had a meaningful non-operating contribution. The 0.63-percentage-point decline in the tax rate also supported the 2.62% sequential increase in net profit.
Margin remains below the sector comparison
Operating margin declined from 9.24% in Q1FY27 to 8.47% in Q2FY27, marking a sequential deterioration rather than an improvement in the latest quarter. The margin was 3.88 percentage points below the 12.35% median among 159 Consumer Discretionary companies that had reported.
Results filed after market close
The company filed these results after market close. The stock's post-results response is therefore not covered in this update.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,084 cr | ₹987 cr | +9.88% |
| Other income | ₹13 cr | ₹12 cr | +2.89% |
| Expenses | ₹992 cr | ₹895 cr | +10.81% |
| Operating profit | ₹92 cr | ₹91 cr | +0.71% |
| Operating margin (%) | 8.47% | 9.24% | — |
| Interest | ₹5 cr | ₹6 cr | -13.91% |
| Depreciation | ₹15 cr | ₹15 cr | +2.39% |
| Profit before tax | ₹85 cr | ₹83 cr | +1.75% |
| Tax | ₹22 cr | ₹22 cr | -0.69% |
| Net profit | ₹63 cr | ₹61 cr | +2.62% |
| EPS (₹) | ₹3.20 | ₹3.12 | +2.56% |
Operating margin of 8.47% compares with a Consumer Discretionary sector median of 12.35% across 159 peers that have reported Q2FY27.
What to watch
- Whether revenue growth outpaces the 10.81% sequential expense growth recorded this quarter.
- Whether operating margin recovers from 8.47% toward the Q1FY27 level of 9.24%.
- Whether other income's 15.12% share of pre-tax profit and the 25.51% tax rate remain at similar levels.