Operating margin improves, but lower other income cuts profit
Consolidated revenue growth outpaced expense growth in Q2FY27, but other income fell 42.25% sequentially and profit before tax declined 8.56%.
Filed 22 Oct 2026, 21:12 IST · after market close · CYBERTECH (CYBERTECH)
Key takeaways
- Consolidated operating margin rose 2.68 percentage points QoQ to 11.04% as revenue growth of +7.09% outpaced expense growth of +3.95%.
- Net profit fell -8.44% QoQ to Rs 8.68 cr despite operating profit rising +41.43%, as other income dropped -42.25%.
- Other income contributed 40.99% of consolidated profit before tax, making the quarter's earnings mix a key quality issue.
Operating improvement came from better cost absorption
Consolidated revenue rose +7.09% QoQ to Rs 73.3 cr, while expenses increased +3.95% to Rs 65.21 cr. The wider gap between revenue and expense growth lifted operating profit +41.43% and expanded operating margin by 2.68 percentage points to 11.04%.
Other income drove the disconnect between operating and net profit
Profit before tax fell -8.56% QoQ even as operating profit improved, because other income declined -42.25% to Rs 4.73 cr. Other income represented 40.99% of consolidated profit before tax, so reported earnings remained materially dependent on non-operating income. The tax rate increased 0.54 percentage points and interest expense rose +12.20% QoQ.
Q2 was filed after market close without a recorded reaction
The consolidated results were filed at 21:12 IST on 22 October 2026, after market close. The reported quarter therefore shows stronger operating momentum than Q1FY27, but weaker profit conversion because the non-operating contribution reduced.
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 | ₹68 cr | +7.09% |
| Other income | ₹5 cr | ₹8 cr | -42.25% |
| Expenses | ₹65 cr | ₹63 cr | +3.95% |
| Operating profit | ₹8 cr | ₹6 cr | +41.43% |
| Operating margin (%) | 11.04% | 8.36% | — |
| Interest | ₹0 cr | ₹0 cr | +12.20% |
| Depreciation | ₹1 cr | ₹1 cr | -7.95% |
| Profit before tax | ₹12 cr | ₹13 cr | -8.56% |
| Tax | ₹3 cr | ₹3 cr | -6.21% |
| Net profit | ₹9 cr | ₹9 cr | -8.44% |
| EPS (₹) | ₹2.86 | ₹3.06 | -6.54% |
What to watch
- Whether operating margin holds above 11.04% after its 2.68-percentage-point QoQ gain.
- The share of other income in profit before tax after it contributed 40.99% in Q2FY27.
- Whether expense growth stays below revenue growth, after +3.95% versus +7.09% QoQ.