DigiSpice profit rises on other income as operating margin slips
Revenue grew +10.07% QoQ, but costs grew faster and operating margin fell 1.19 percentage points; the results were filed after market close.
Filed 03 Nov 2026, 20:57 IST · after market close · DigiSpice Technologies Ltd (DIGISPICE)
Key takeaways
- Consolidated revenue rose +10.07% QoQ to Rs 118.6 cr, but expenses grew +11.49%, reducing operating profit by -6.31%.
- Operating margin narrowed 1.19 percentage points to 6.76% QoQ, leaving it 12.51 percentage points below the IT peer median.
- Net profit rose +34.55% QoQ to Rs 6.6 cr, helped by other income equal to 49.12% of pre-tax profit and a 5.50-point fall in the tax rate.
Price around the results
Revenue grew, but operating profit fell
Consolidated revenue increased +10.07% QoQ to Rs 118.6 cr, while expenses grew faster at +11.49%. That cost imbalance cut operating profit by -6.31% and narrowed operating margin by 1.19 percentage points to 6.76%.
Other income lifted reported profit
Pre-tax profit rose +26.68% QoQ even as operating profit declined, as other income increased +57.78% to Rs 6.39 cr. Other income contributed 49.12% of pre-tax profit, while interest fell -31.58% and depreciation fell -41.84%. The tax rate also declined 5.50 percentage points to 26.75%, adding to the increase in net profit.
Margin sits near the bottom of the IT peer set
The available quarterly trend shows operating margin declining from 7.95% in Q1FY27 to 6.76% in Q2FY27. Among 51 Information Technology peers that have reported, DigiSpice's margin was 12.51 percentage points below the 19.27% median and ranked fifth from the bottom.
Results came after market close
The consolidated results were filed after market close, so there is no post-result market reaction to assess yet. The quarter's profit increase therefore needs to be read alongside the weaker operating margin and the large contribution from other income.
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 | ₹119 cr | ₹108 cr | +10.07% |
| Other income | ₹6 cr | ₹4 cr | +57.78% |
| Expenses | ₹111 cr | ₹99 cr | +11.49% |
| Operating profit | ₹8 cr | ₹9 cr | -6.31% |
| Operating margin (%) | 6.76% | 7.95% | — |
| Interest | ₹0 cr | ₹0 cr | -31.58% |
| Depreciation | ₹1 cr | ₹2 cr | -41.84% |
| Profit before tax | ₹13 cr | ₹10 cr | +26.68% |
| Tax | ₹3 cr | ₹3 cr | +5.14% |
| Net profit | ₹9 cr | ₹7 cr | +34.55% |
| EPS (₹) | ₹0.37 | ₹0.28 | +32.14% |
Operating margin of 6.76% compares with a Information Technology sector median of 19.27% across 51 peers that have reported Q2FY27.
What to watch
- Whether expenses grow slower than revenue after rising +11.49% QoQ against revenue growth of +10.07%.
- Whether operating margin recovers from 6.76% after the 1.19-point QoQ decline.
- Whether other income remains near 49.12% of pre-tax profit and the tax rate near 26.75%.