DPSCLTD's operating margin expands 4.76 points as costs fall
Revenue rose +4.16% QoQ while expenses fell -1.08%, helping PBT swing from a Rs 0.24 cr loss to Rs 10.65 cr.
Filed 13 Nov 2026, 19:08 IST · after market close · DPSCLTD (DPSCLTD)
Key takeaways
- Consolidated operating margin widened 4.76 percentage points QoQ to 10.23% as revenue grew +4.16% while expenses fell -1.08%.
- Profit before tax turned positive at Rs 10.65 cr from a Rs 0.24 cr loss in Q1FY27, helped by a -37.54% decline in interest costs.
- Net profit increased +136.49% QoQ to Rs 9.98 cr, while other income contributed 13.80% of current-quarter PBT.
Revenue growth was smaller than the operating recovery
Consolidated revenue grew +4.16% QoQ to Rs 194.70 cr, while operating profit rose +94.62% to Rs 19.91 cr. The much larger operating-profit increase reflects revenue growth alongside a -1.08% decline in expenses.
Lower interest costs supported the margin expansion
Operating margin widened 4.76 percentage points to 10.23% because expenses fell while revenue increased. Interest costs declined -37.54% QoQ, whereas depreciation edged up +0.80%, so lower financing costs also supported profit below the operating line. Other income accounted for 13.80% of PBT, making it a contributor but not the main source of earnings.
Profit swung positive, but the tax comparison is distorted
Profit before tax moved from Rs -0.24 cr in Q1FY27 to Rs 10.65 cr, and net profit rose +136.49% QoQ. The tax rate shifted from -871.46% to 31.49%; the Q1 rate was distorted by negative PBT, making the 902.95 percentage-point change less useful as a quality signal. The reported trend shows operating margin improving from 5.47% in Q1FY27 to 10.23% in Q2FY27. The consolidated results were filed after market close on 13 Nov 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 | ₹195 cr | ₹187 cr | +4.16% |
| Other income | ₹1 cr | ₹1 cr | +13.08% |
| Expenses | ₹175 cr | ₹177 cr | -1.08% |
| Operating profit | ₹20 cr | ₹10 cr | +94.62% |
| Operating margin (%) | 10.23% | 5.47% | — |
| Interest | ₹2 cr | ₹3 cr | -37.54% |
| Depreciation | ₹9 cr | ₹9 cr | +0.80% |
| Profit before tax | ₹11 cr | ₹-0 cr | — |
| Tax | ₹3 cr | ₹2 cr | +58.02% |
| Net profit | ₹10 cr | ₹4 cr | +136.49% |
| EPS (₹) | ₹0.06 | ₹0.03 | +100.00% |
What to watch
- Whether operating margin holds above 10.23% after rising from 5.47% in Q1FY27.
- Whether expenses remain below the Q1FY27 level of Rs 176.70 cr.
- Whether interest expense remains below Rs 1.88 cr after falling -37.54% QoQ.