Cubex Tubings lifts operating margin by 6.45 points sequentially
Revenue grew +27.74%, faster than expenses at +19.32%, while the lower tax rate also supported net profit growth.
Filed 23 Oct 2026, 16:34 IST · after market close · Cubex Tubings Ltd (CUBEXTUB)
Key takeaways
- Standalone net profit rose 246.21% QoQ as revenue grew 27.74%.
- Operating margin expanded 6.45 percentage points to 8.62% because expenses grew slower than revenue.
- Operating margin remained 2.37 percentage points below the 10.99% median for 30 Industrials peers.
Price around the results
Q2FY27 profit rebound followed faster revenue growth
Cubex Tubings reported standalone results, with net profit rising 246.21% QoQ and EPS increasing 246.74% to Rs 3.19. Profit before tax grew 234.41%, broadly tracking the improvement in operating profit rather than a large increase in non-operating income. Revenue increased 27.74% from Q1FY27.
Lower cost growth drove the margin expansion
Expenses grew 19.32%, slower than the 27.74% increase in revenue, lifting operating margin by 6.45 percentage points to 8.62%. Interest expense still increased 18.00%, partly offsetting the operating improvement. The tax rate fell 2.50 percentage points to 26.55%, which also supported net profit, while other income accounted for 9.65% of pre-tax profit.
Margin improved sequentially but stayed below peers
Operating margin rose from 2.17% in Q1FY27 to 8.62% in Q2FY27, marking a sharp sequential recovery. It was nevertheless 2.37 percentage points below the 10.99% median among 30 Industrials companies that had reported. The quarter-on-quarter comparison shows improvement, but the margin has not yet reached the peer median.
Initial market reaction was mildly negative
The stock fell 0.50% in the initial post-results reaction and underperformed the broader market by 1.18%. Trading volume was 0.13 times the reference level, so the move came with limited activity.
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 | ₹83 cr | ₹65 cr | +27.74% |
| Other income | ₹1 cr | ₹2 cr | -66.10% |
| Expenses | ₹76 cr | ₹64 cr | +19.32% |
| Operating profit | ₹7 cr | ₹1 cr | +407.09% |
| Operating margin (%) | 8.62% | 2.17% | — |
| Interest | ₹1 cr | ₹1 cr | +18.00% |
| Depreciation | ₹0 cr | ₹0 cr | +6.06% |
| Profit before tax | ₹6 cr | ₹2 cr | +234.41% |
| Tax | ₹2 cr | ₹1 cr | +205.56% |
| Net profit | ₹5 cr | ₹1 cr | +246.21% |
| EPS (₹) | ₹3.19 | ₹0.92 | +246.74% |
Operating margin of 8.62% compares with a Industrials sector median of 10.99% across 30 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.50% | -1.18% |
Volume on the results session was 0.13× its 20-day average.
What to watch
- Whether operating margin holds above 8.62% after the Q2FY27 expansion.
- Whether expenses continue to grow slower than revenue, following 19.32% expense growth versus 27.74% revenue growth.
- Whether the tax rate remains close to 26.55% without adding further support to profit growth.