Operating recovery cannot offset collapse in other income
Consolidated operating margin improved sequentially, but lower other income and a negative tax rate made profit quality weaker.
Filed 12 Nov 2026, 17:06 IST · after market close · Elgi Rubber Company Ltd (ELGIRUBCO)
Key takeaways
- Revenue rose 17.43% QoQ while expenses grew 12.76%, lifting operating margin by 3.82 percentage points to 7.55%.
- Net profit fell 59.27% QoQ as other income dropped 72.41% and the tax rate moved to -57.45%.
- Operating margin was 3.96 percentage points below the 11.51% median for 230 reported Industrials peers.
Price around the results
Revenue growth outpaced costs in Q2FY27
Elgi Rubber’s consolidated revenue increased 17.43% QoQ to Rs 82.31 cr, while expenses rose 12.76%. That operating leverage lifted operating profit by 138.31% and expanded operating margin by 3.82 percentage points to 7.55%.
Other income and tax drove the profit decline
Net profit fell 59.27% QoQ to Rs 16.64 cr despite the operating improvement, because other income declined 72.41% to Rs 14.66 cr. Other income equalled 138.69% of profit before tax, while the tax rate shifted from 8.19% to -57.45%, making reported profit heavily dependent on non-operating and tax effects.
Margin improved sequentially but stayed below peers
The quarter marked a sequential operating-margin recovery from 3.73%, although the available trend does not establish a multi-quarter direction. Elgi Rubber’s 7.55% margin was 3.96 percentage points below the 11.51% median among 230 Industrials peers that had reported the quarter; it ranked 49th from the bottom.
Market response is not yet available
The consolidated results were filed after market close, so no market reaction is covered here. A post-results move cannot yet be assessed against the stock’s prior reaction history.
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 | ₹82 cr | ₹70 cr | +17.43% |
| Other income | ₹15 cr | ₹53 cr | -72.41% |
| Expenses | ₹76 cr | ₹67 cr | +12.76% |
| Operating profit | ₹6 cr | ₹3 cr | +138.31% |
| Operating margin (%) | 7.55% | 3.73% | — |
| Interest | ₹7 cr | ₹8 cr | -15.77% |
| Depreciation | ₹4 cr | ₹3 cr | +8.09% |
| Profit before tax | ₹11 cr | ₹44 cr | -76.24% |
| Tax | ₹-6 cr | ₹4 cr | — |
| Net profit | ₹17 cr | ₹41 cr | -59.27% |
| EPS (₹) | ₹3.32 | ₹8.16 | -59.31% |
Operating margin of 7.55% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.55% after its 3.82 percentage-point sequential improvement.
- Whether other income stays below the Q2FY27 level of Rs 14.66 cr.
- Whether the tax rate moves back from -57.45% toward a normal positive rate.