Ducon margin improves but remains well below Industrials peer median
Q2 revenue and profit rose sequentially as costs lagged sales growth, though other income made up 18.54% of pre-tax profit.
Filed 05 Nov 2026, 19:03 IST · after market close · Ducon Infratechnologies Ltd (DUCON)
Key takeaways
- Consolidated revenue rose +4.67% QoQ to Rs 109.3 cr, while operating margin improved +0.30 percentage points to 5.03% as expenses grew more slowly than revenue.
- Net profit increased +23.50% QoQ to Rs 2.68 cr despite interest rising +7.61%, helped by a -3.91 percentage-point fall in the tax rate to 30.04%.
- Ducon's 5.03% operating margin was -6.45 percentage points below the 11.48% median for 180 reported Industrials peers.
Price around the results
Revenue growth lifted Ducon's operating margin
Ducon reported consolidated revenue growth of +4.67% QoQ, while expenses increased +4.35%. The narrower cost growth lifted operating profit by +11.13% and improved operating margin by +0.30 percentage points to 5.03%. The quarter's comparison shows sequential improvement from Q1FY27's 4.73% margin, but not yet a multi-quarter direction.
Lower tax rate offset higher interest costs
Net profit rose +23.50% QoQ, ahead of the +16.77% increase in pre-tax profit. The tax rate declined by -3.91 percentage points to 30.04%, cushioning a +7.61% increase in interest expense. Other income contributed 18.54% of pre-tax profit, making it a material part of reported earnings.
Margin remains below the Industrials peer median
Ducon's 5.03% operating margin was -6.45 percentage points below the 11.48% median across 180 Industrials peers that had reported the quarter, placing it 24th from the bottom. The results were filed after market close, so a post-results stock reaction is not yet part of this readout.
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 | ₹109 cr | ₹104 cr | +4.67% |
| Other income | ₹1 cr | ₹1 cr | +42.00% |
| Expenses | ₹104 cr | ₹99 cr | +4.35% |
| Operating profit | ₹5 cr | ₹5 cr | +11.13% |
| Operating margin (%) | 5.03% | 4.73% | — |
| Interest | ₹2 cr | ₹2 cr | +7.61% |
| Depreciation | ₹0 cr | ₹0 cr | +21.88% |
| Profit before tax | ₹4 cr | ₹3 cr | +16.77% |
| Tax | ₹1 cr | ₹1 cr | +3.60% |
| Net profit | ₹3 cr | ₹2 cr | +23.50% |
| EPS (₹) | ₹0.05 | ₹0.07 | -28.57% |
Operating margin of 5.03% compares with a Industrials sector median of 11.48% across 180 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 5.03% while revenue growth remains ahead of expense growth.
- Whether interest expense moves below Rs 1.98 cr after rising +7.61% QoQ.
- Whether other income's contribution falls below 18.54% of pre-tax profit.