Costs outpaced revenue, cutting Dynamic Cables' operating margin
Standalone net profit fell 11.22% QoQ as interest expense rose 48.6%, while the margin trailed the Industrials peer median.
Filed 27 Oct 2026, 12:49 IST · Dynamic Cables Ltd (DYCL)
Key takeaways
- Standalone operating margin narrowed 0.87 percentage points sequentially to 10.01% as expenses grew faster than revenue.
- Standalone net profit fell 11.22% sequentially even as revenue rose 4.04%, with interest expense up 48.60%.
- Dynamic Cables' 10.01% operating margin was 0.93 percentage points below the 10.94% median for 37 Industrials peers reporting Q2FY27.
Price around the results
Revenue growth did not translate into earnings momentum
Standalone revenue rose 4.04% sequentially to Rs 363.19 cr, but operating profit fell 4.34% as expenses increased 5.06%, faster than revenue. Net profit declined 11.22% to Rs 22.15 cr, showing that the higher sales base was outweighed by cost and below-operating-profit pressure.
Higher costs and finance charges squeezed margins
Operating margin narrowed by 0.87 percentage points to 10.01% because costs grew faster than revenue. Interest expense climbed 48.60% and depreciation rose 21.68%, adding pressure below operating profit, while the tax rate eased by only 0.07 percentage points. Other income contributed 3.54% of profit before tax, so it was not a major support to reported profit.
Margin trails the Industrials peer median
Dynamic Cables' 10.01% operating margin was 0.93 percentage points below the 10.94% median among 37 Industrials companies that had reported the same quarter. Sequentially, margin also fell from 10.88% in Q1FY27, making cost control the key difference between revenue growth and profit growth this quarter.
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 | ₹363 cr | ₹349 cr | +4.04% |
| Other income | ₹1 cr | ₹1 cr | -11.02% |
| Expenses | ₹327 cr | ₹311 cr | +5.06% |
| Operating profit | ₹36 cr | ₹38 cr | -4.34% |
| Operating margin (%) | 10.01% | 10.88% | — |
| Interest | ₹4 cr | ₹3 cr | +48.60% |
| Depreciation | ₹3 cr | ₹3 cr | +21.68% |
| Profit before tax | ₹30 cr | ₹33 cr | -11.30% |
| Tax | ₹8 cr | ₹9 cr | -11.52% |
| Net profit | ₹22 cr | ₹25 cr | -11.22% |
| EPS (₹) | ₹4.57 | ₹5.15 | -11.26% |
Operating margin of 10.01% compares with a Industrials sector median of 10.94% across 37 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers above 10.01% next quarter.
- Whether expense growth moderates from 5.06% against revenue growth of 4.04%.
- Whether interest expense growth reverses from 48.60%.