CSM’s operating margin worsens as costs outpace near-doubled revenue
Consolidated revenue rose +98.99% QoQ, but expenses grew +105.94%, while a Rs 6.12 cr tax credit softened the pre-tax loss.
Filed 13 Nov 2026, 19:03 IST · after market close · CSM Technologies Ltd (CSM)
Key takeaways
- Consolidated operating margin worsened to -21.96%, down 4.12 percentage points QoQ as expenses grew +105.94%, faster than revenue at +98.99%.
- CSM reported a consolidated net loss of Rs 18.48 cr, while a Rs 6.12 cr tax credit reduced the Rs 24.60 cr pre-tax loss.
- CSM’s -21.96% operating margin was 37.36 percentage points below the 15.40% median for 88 reported IT peers.
Price around the results
Revenue nearly doubled, but losses deepened
In consolidated Q2FY27, revenue rose +98.99% QoQ to Rs 84.97 cr, but the higher scale did not cover the cost base. The operating loss widened to Rs 18.66 cr from Rs 7.62 cr in Q1FY27, and the net loss increased to Rs 18.48 cr from Rs 8.28 cr. This left the quarter with a Rs 24.60 cr pre-tax loss.
Faster cost growth drove the margin decline
Expenses grew +105.94% QoQ, outpacing revenue growth and pushing operating margin down 4.12 percentage points to -21.96%. Interest expense rose +85.71% and depreciation increased +114.58%, adding pressure below operating profit. Other income represented -5.33% of pre-tax profit, so it did not offset the operating shortfall; the Rs 6.12 cr tax credit reduced the reported net loss.
Margin sits well below reported IT peers
Sequentially, operating margin deteriorated from -17.84% in Q1FY27 to -21.96% in Q2FY27. CSM’s margin was 37.36 percentage points below the 15.40% median of 88 Information Technology peers that had reported, placing the company sixth from the bottom.
Results came after the market close
CSM filed its consolidated results after market close on 13 November 2026 at 19:03 IST. The immediate filing therefore does not include a market reaction.
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 | ₹85 cr | ₹43 cr | +98.99% |
| Other income | ₹1 cr | ₹1 cr | +142.59% |
| Expenses | ₹104 cr | ₹50 cr | +105.94% |
| Operating profit | ₹-19 cr | ₹-8 cr | -144.88% |
| Operating margin (%) | -21.96% | -17.84% | — |
| Interest | ₹4 cr | ₹2 cr | +85.71% |
| Depreciation | ₹3 cr | ₹1 cr | +114.58% |
| Profit before tax | ₹-25 cr | ₹-11 cr | -128.84% |
| Tax | ₹-6 cr | ₹-2 cr | -147.77% |
| Net profit | ₹-18 cr | ₹-8 cr | -123.19% |
| EPS (₹) | ₹-4.12 | ₹-2.14 | -92.52% |
Operating margin of -21.96% compares with a Information Technology sector median of 15.40% across 88 peers that have reported Q2FY27.
What to watch
- Whether expense growth falls below revenue growth after rising +105.94% versus revenue growth of +98.99% QoQ.
- Whether operating margin recovers from -21.96% toward the Q1FY27 level of -17.84%.
- Whether interest expense growth moderates after increasing +85.71% QoQ.