Deepak Builders' Q2 profit jumps as tax rate falls
Revenue grew faster than expenses QoQ, lifting operating margin, but other income contributed 37.92% of pre-tax profit.
Filed 12 Nov 2026, 17:39 IST · after market close · Deepak Builders & Engineers India Ltd (DBEIL)
Key takeaways
- Standalone revenue rose +9.13% QoQ while expenses grew +8.08%, lifting operating margin by 0.83 percentage points to 14.1%.
- Net profit increased +148.96% QoQ to Rs 7.17 cr, helped by the tax rate falling 17.41 percentage points to 7.83%.
- Other income accounted for 37.92% of pre-tax profit, making a sizable contribution to reported earnings.
Price around the results
Revenue growth outpaced costs in Q2FY27
All figures are standalone. Revenue increased +9.13% QoQ to Rs 98.06 cr, while expenses rose +8.08%, helping operating profit grow +15.93% to Rs 13.83 cr. The results were filed after market close.
Lower tax and other income lifted reported profit
Operating margin expanded by 0.83 percentage points QoQ because revenue grew faster than expenses. Other income rose +183.65% QoQ, while interest increased +1.22% and depreciation declined -11.05%. The tax rate fell from 25.24% to 7.83%, and other income contributed 37.92% of pre-tax profit.
Margin stayed above the Industrials peer median
Deepak Builders' 14.1% operating margin was 2.59 percentage points above the 11.51% median for 230 Industrials companies that had reported the quarter. The margin also improved from 13.27% in Q1FY27, marking a sequential recovery.
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 | ₹98 cr | ₹90 cr | +9.13% |
| Other income | ₹3 cr | ₹1 cr | +183.65% |
| Expenses | ₹84 cr | ₹78 cr | +8.08% |
| Operating profit | ₹14 cr | ₹12 cr | +15.93% |
| Operating margin (%) | 14.10% | 13.27% | — |
| Interest | ₹7 cr | ₹7 cr | +1.22% |
| Depreciation | ₹2 cr | ₹2 cr | -11.05% |
| Profit before tax | ₹8 cr | ₹4 cr | +102.08% |
| Tax | ₹1 cr | ₹1 cr | -37.11% |
| Net profit | ₹7 cr | ₹3 cr | +148.96% |
| EPS (₹) | ₹0.16 | ₹0.06 | +166.67% |
Operating margin of 14.10% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 14.1% after the 0.83-percentage-point QoQ improvement.
- Other income's share of pre-tax profit versus 37.92%.
- The tax rate versus 7.83%, which was 17.41 percentage points lower QoQ.