Denta's margin expands as revenue growth outpaces expenses
Consolidated operating margin rose 1.78 percentage points QoQ but remained 2.38 points below the Utilities peer median.
Filed 06 Nov 2026, 18:00 IST · after market close · Denta Water & Infra Solutions Ltd (DENTA)
Key takeaways
- Consolidated revenue grew 18.00% QoQ while expenses rose 15.28%, lifting operating margin by 1.78 percentage points.
- Net profit increased 17.73% QoQ despite a 1.43 percentage-point rise in the tax rate, helped by a 78.38% fall in interest.
- Operating margin at 24.15% was 2.38 percentage points below the 26-peer Utilities median.
Price around the results
Faster revenue growth widened the operating margin
Denta Water & Infra Solutions' consolidated revenue rose 18.00% QoQ to Rs 69.22 cr, while expenses increased 15.28% to Rs 52.50 cr. Costs therefore grew more slowly than revenue, lifting operating margin by 1.78 percentage points to 24.15%. Operating profit increased 27.34% QoQ to Rs 16.72 cr.
Lower interest supported profit, but other income remained material
Profit before tax rose 20.01% QoQ, helped by a 78.38% decline in interest expense to Rs 0.08 cr. The tax rate increased by 1.43 percentage points to 26.66%, which limited the conversion of pre-tax gains into net profit. Other income contributed 7.98% of pre-tax profit, so reported earnings included a meaningful non-operating component.
Margin remains below the Utilities peer median
Denta's 24.15% operating margin was 2.38 percentage points below the 26.53% median among 26 Utilities peers that had reported the quarter. The available quarter-on-quarter trend shows an improvement from 22.37% in Q1FY27, rather than a further margin decline. The consolidated results were filed after market close on 6 November 2026.
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 | ₹69 cr | ₹59 cr | +18.00% |
| Other income | ₹1 cr | ₹2 cr | -38.10% |
| Expenses | ₹53 cr | ₹46 cr | +15.28% |
| Operating profit | ₹17 cr | ₹13 cr | +27.34% |
| Operating margin (%) | 24.15% | 22.37% | — |
| Interest | ₹0 cr | ₹0 cr | -78.38% |
| Depreciation | ₹0 cr | ₹0 cr | +7.69% |
| Profit before tax | ₹18 cr | ₹15 cr | +20.01% |
| Tax | ₹5 cr | ₹4 cr | +26.79% |
| Net profit | ₹13 cr | ₹11 cr | +17.73% |
| EPS (₹) | ₹4.92 | ₹4.18 | +17.70% |
Operating margin of 24.15% compares with a Utilities sector median of 26.53% across 26 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 24.15% in the next reported quarter.
- Whether revenue growth remains ahead of the 15.28% QoQ expense-growth rate.
- Whether other income stays below 7.98% of pre-tax profit.