Emkay’s operating margin jumps 18.36 pp as revenue surges 70.49%
Expenses rose 34.54% QoQ, while a higher 23.67% tax rate limited the conversion of the pre-tax gain into net profit.
Filed 28 Oct 2026, 17:58 IST · after market close · Emkay Global Financial Services Ltd (EMKAY)
Key takeaways
- Standalone revenue rose +70.49% QoQ while expenses grew +34.54%, lifting operating margin by 18.36 percentage points.
- Profit before tax increased +454.58% QoQ, but the tax rate rose 18.84 percentage points and other income contributed 11.44% of pre-tax profit.
- Operating margin was 31.3%, 29.99 percentage points below the 61.29% median for 41 Financial Services peers.
Price around the results
Investment banking activity drives a sharp sequential rebound
Standalone revenue rose +70.49% QoQ to Rs 141.51 cr, well ahead of the +34.54% increase in expenses, which drove operating profit growth of +312.38%. Management said the Investment Banking business executed seven transactions across IPOs, QIPs and an OFS during the quarter. It also said all nine Asset Management strategies outperformed their respective benchmarks.
Higher tax and interest reduced earnings conversion
Operating margin expanded by 18.36 percentage points to 31.3% as revenue growth outpaced costs. Interest expense rose +28.19% QoQ, while the tax rate increased by 18.84 percentage points to 23.67%, making the net-profit increase less pronounced than the pre-tax gain. Other income was 11.44% of pre-tax profit, so it made a material contribution to reported earnings.
Margin improved from Q1 but remains below the sector median
Operating margin rose from 12.94% in Q1FY27 to 31.3% in Q2FY27, reversing the previous quarter’s lower margin. Among 41 Financial Services peers that have reported the same quarter, Emkay’s margin was 29.99 percentage points below the 61.29% median and ranked 11th from the bottom.
Management points to wider distribution and regional expansion
Management said its H2 FY27 asset-management priorities are to build momentum across existing strategies and expand distribution reach. It said the Wealth Management business added Bhopal and migrated to a new technology platform, while Emkay opened a Lucknow branch. Management also said it is deepening distributor relationships and diversifying its distribution mix to support sustainable inflows.
Results were filed after market close
The company filed these standalone results after market close on 28 October 2026 at 17:58 IST. There is therefore no same-session market reaction to interpret.
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 | ₹142 cr | ₹83 cr | +70.49% |
| Other income | ₹4 cr | ₹4 cr | +0.00% |
| Expenses | ₹97 cr | ₹72 cr | +34.54% |
| Operating profit | ₹44 cr | ₹11 cr | +312.38% |
| Operating margin (%) | 31.30% | 12.94% | — |
| Interest | ₹7 cr | ₹6 cr | +28.19% |
| Depreciation | ₹3 cr | ₹3 cr | +9.54% |
| Profit before tax | ₹39 cr | ₹7 cr | +454.58% |
| Tax | ₹9 cr | ₹0 cr | +2594.12% |
| Net profit | ₹30 cr | ₹7 cr | +344.36% |
| EPS (₹) | ₹10.84 | ₹2.48 | +337.10% |
Operating margin of 31.30% compares with a Financial Services sector median of 61.29% across 41 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The Investment Banking business executed seven transactions across IPOs, QIPs and an OFS during the quarter.
- All nine Asset Management investment strategies outperformed their respective benchmarks during the quarter.
Guidance & outlook
- Asset management priorities for H2 FY27 include building momentum across strategies and expanding distribution reach.
Expansion
- The Wealth Management business added Bhopal to its network and migrated to a new technology platform.
- Emkay opened a branch in Lucknow to strengthen its regional presence and engagement with distribution partners.
New initiatives
- The company is deepening distributor relationships and building a more diversified distribution mix to support sustainable inflows.
What to watch
- Whether standalone revenue remains above Rs 141.51 cr.
- Whether operating margin holds above 31.3%.
- Whether the tax rate stays below 23.67%.