Higher operating margin could not prevent near-zero standalone profit
Expenses fell faster than revenue, but 53.79% higher interest and 114.04% higher depreciation cut pre-tax profit to Rs 0.09 cr.
Filed 07 Nov 2026, 20:25 IST · after market close · EIFFL (EIFFL)
Key takeaways
- Standalone operating profit rose 6.46% sequentially even as revenue fell 17.03%, because expenses declined 19.60%.
- Operating margin expanded by 2.80 percentage points to 12.67%, but interest and depreciation rose 53.79% and 114.04%, respectively.
- Net profit fell 87.84% to Rs 0.09 cr, with other income accounting for 1,077.78% of pre-tax profit and the tax rate falling to 0.00%.
Lower costs lifted operating margin despite weaker revenue
Standalone revenue declined 17.03% sequentially, while expenses fell 19.60%, allowing operating profit to rise 6.46%. Because costs declined faster than revenue, operating margin expanded by 2.80 percentage points to 12.67%.
Interest and depreciation erased the operating improvement
Interest expense increased 53.79% and depreciation rose 114.04% from Q1FY27, more than offsetting the gain in operating profit. Pre-tax profit therefore fell 92.62% to Rs 0.09 cr. Other income was 1,077.78% of pre-tax profit, while the tax rate fell from 39.34% to 0.00%, making reported net profit a weak measure of operating performance this quarter.
Profit weakened sharply from Q1FY27
Compared with Q1FY27, net profit fell 87.84% and EPS declined 90.00% to Rs 0.03. The available quarterly history covers only the immediately preceding quarter, so it does not establish a multi-quarter margin direction.
Results were filed after market close
The company filed its standalone results after market close on 07 Nov 2026. The stock's post-results response is not yet part of this update.
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 | ₹30 cr | ₹36 cr | -17.03% |
| Other income | ₹1 cr | ₹0 cr | +288.00% |
| Expenses | ₹26 cr | ₹33 cr | -19.60% |
| Operating profit | ₹4 cr | ₹4 cr | +6.46% |
| Operating margin (%) | 12.67% | 9.87% | — |
| Interest | ₹2 cr | ₹1 cr | +53.79% |
| Depreciation | ₹2 cr | ₹1 cr | +114.04% |
| Profit before tax | ₹0 cr | ₹1 cr | -92.62% |
| Tax | ₹0 cr | ₹0 cr | -100.00% |
| Net profit | ₹0 cr | ₹1 cr | -87.84% |
| EPS (₹) | ₹0.03 | ₹0.30 | -90.00% |
What to watch
- Whether operating margin holds above 12.67% after the Q1FY27-to-Q2FY27 improvement.
- Whether interest expense moves back from the 53.79% sequential increase.
- Whether other income remains a large contributor after accounting for 1,077.78% of pre-tax profit.