DCX narrows loss as revenue rises, but operating margin stays negative
Filed 11 Nov 2026, 17:32 IST · after market close · DCX Systems Ltd (DCXINDIA)
Key takeaways
- Consolidated revenue rose +35.93% QoQ while expenses grew +24.21%, narrowing the operating loss but leaving operating margin at -0.85%.
- Net loss narrowed to Rs 0.26 cr from Rs 8.66 cr QoQ, but other income was 424.73% of pre-tax profit and the tax rate was 113.84%.
- DCX’s operating margin was 12.39 percentage points below the Industrials median across 208 reported peers, placing it eighth from the bottom.
Price around the results
Revenue improved, but operations remained loss-making
In consolidated Q2FY27 results, revenue increased to Rs 140.17 cr from Rs 103.12 cr in Q1FY27, while expenses rose to Rs 141.36 cr from Rs 113.81 cr. Since revenue grew faster than expenses, the operating loss narrowed to Rs 1.19 cr from Rs 10.68 cr and operating margin improved by 9.51 percentage points. Operations nevertheless remained in the red, with margin at -0.85%.
Other income and tax drove the reported loss
Other income of Rs 7.90 cr was 424.73% of pre-tax profit, making it a major contributor to the reported profit before tax of Rs 1.86 cr. Tax expense was Rs 2.11 cr, producing a 113.84% tax rate and pushing net profit to a loss of Rs 0.26 cr. Interest expense also increased +13.10% sequentially to Rs 0.95 cr.
Margin remained far below the Industrials peer median
DCX’s -0.85% operating margin was 12.39 percentage points below the 11.54% median for 208 Industrials peers that had reported the quarter. Sequentially, this was a marked improvement from -10.36% in Q1FY27, but the company still ranked eighth from the bottom on operating margin among the reported peers.
Results were filed after market close
The company filed these consolidated results at 17:32 IST on 11 November 2026, after the market closed. The filing therefore did not provide an immediate market reaction to place against the company’s past post-results trading pattern.
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 | ₹140 cr | ₹103 cr | +35.93% |
| Other income | ₹8 cr | ₹9 cr | -9.30% |
| Expenses | ₹141 cr | ₹114 cr | +24.21% |
| Operating profit | ₹-1 cr | ₹-11 cr | +88.86% |
| Operating margin (%) | -0.85% | -10.36% | — |
| Interest | ₹1 cr | ₹1 cr | +13.10% |
| Depreciation | ₹4 cr | ₹4 cr | +5.98% |
| Profit before tax | ₹2 cr | ₹-6 cr | — |
| Tax | ₹2 cr | ₹2 cr | -2.76% |
| Net profit | ₹-0 cr | ₹-9 cr | +97.00% |
| EPS (₹) | ₹-0.02 | ₹-0.78 | +97.44% |
Operating margin of -0.85% compares with a Industrials sector median of 11.54% across 208 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -0.85% after the 9.51 percentage-point sequential recovery.
- Whether other income remains a large contributor relative to the 424.73% share of pre-tax profit.
- Whether the tax rate moves down from 113.84% and allows operating improvement to reach net profit.