DP Wires’ operating margin narrows as expenses fall slower than revenue
A 1.72-point margin decline and other income equal to 91.16% of pre-tax profit shaped the standalone quarter.
Filed 05 Nov 2026, 16:26 IST · after market close · DPWIRES (DPWIRES)
Key takeaways
- Standalone operating margin narrowed by 1.72 percentage points QoQ to 1.22% as expenses fell 4.35% against a 6.02% revenue decline.
- Other income accounted for 91.16% of pre-tax profit, making reported net profit less reflective of operating earnings.
- Net profit declined 5.06% QoQ even as other income rose 74.61% and interest cost increased 72.00%.
Revenue contraction squeezes standalone operating profit
Sequential revenue fell 6.02%, but expenses declined only 4.35%; that mismatch drove operating profit down 61.10% and narrowed operating margin by 1.72 percentage points. Profit before tax still declined 3.93% because higher other income only partly offset the weaker operating result. Net profit fell 5.06% QoQ.
Other income supported profit as financing costs rose
Other income increased 74.61% QoQ and contributed 91.16% of pre-tax profit, highlighting the limited contribution from core operations to reported earnings. Interest expense rose 72.00% and depreciation increased 23.81%, adding pressure below operating profit. The tax rate also rose by 1.00 percentage point to 26.41%.
The available quarterly trend turned weaker
Operating margin fell from 2.94% in Q1FY27 to 1.22% in Q2FY27, marking a clear sequential deterioration. The company filed these standalone results after market close on 05 Nov 2026 at 16:26 IST, so there is no immediate market response to assess.
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 | ₹123 cr | ₹131 cr | -6.02% |
| Other income | ₹6 cr | ₹3 cr | +74.61% |
| Expenses | ₹121 cr | ₹127 cr | -4.35% |
| Operating profit | ₹1 cr | ₹4 cr | -61.10% |
| Operating margin (%) | 1.22% | 2.94% | — |
| Interest | ₹0 cr | ₹0 cr | +72.00% |
| Depreciation | ₹1 cr | ₹0 cr | +23.81% |
| Profit before tax | ₹6 cr | ₹6 cr | -3.93% |
| Tax | ₹2 cr | ₹2 cr | -0.62% |
| Net profit | ₹5 cr | ₹5 cr | -5.06% |
| EPS (₹) | ₹2.90 | ₹3.06 | -5.23% |
What to watch
- Whether operating margin moves back from 1.22% after the 1.72-percentage-point QoQ decline.
- Whether other income remains close to 91.16% of pre-tax profit.
- Whether interest expense moderates after its 72.00% QoQ increase.