Emmvee profit rises 60.62% YoY as interest cost falls
Revenue growth broadly matched expense growth, keeping operating margin stable, while a lower tax rate and sharply reduced interest expense lifted net profit.
Filed 14 Oct 2026, 19:02 IST · after market close · Emmvee Photovoltaic Power Ltd (EMMVEE)
Key takeaways
- Consolidated net profit rose 60.62% YoY as interest expense fell 82.86%, while other income contributed only 0.54% of pre-tax profit.
- Operating margin improved 0.02 percentage points YoY to 35.33% because expenses grew almost in line with revenue at 39.35% versus 39.38%.
- Q2FY27 marked a second consecutive quarterly margin improvement, with operating margin rising 0.09 percentage points from Q1FY27.
Price around the results
Interest savings, not other income, drove profit growth
Consolidated revenue increased 39.38% YoY, while operating profit grew at a similar 39.43%, showing limited operating leverage. Profit before tax nevertheless rose 59.53% because interest expense fell 82.86% and depreciation increased 19.42%. Other income was just 0.54% of pre-tax profit, so reported earnings were not materially supported by non-operating income.
Margins held as costs tracked revenue
Operating margin expanded 0.02 percentage points YoY because expenses grew 39.35%, almost matching the 39.38% increase in revenue. Sequentially, revenue rose 1.34% and expenses rose 1.20%, lifting operating margin by 0.09 percentage points. The tax rate also fell 1.13 percentage points sequentially and 0.56 percentage points YoY, which supported net profit growth beyond the operating increase.
Margin recovery continues after the Q4FY26 dip
Operating margin has risen for two straight quarters, from 32.84% in Q4FY26 to 35.24% in Q1FY27 and 35.33% in Q2FY27. Emmvee's margin was 20.46 percentage points above the 14.87% median for the six Industrials peers that had reported the same quarter.
Capacity expansion remains the central management theme
Management said Unit 7 is planned to add 6 GW of module and cell capacity during 2026-2027, while the presentation states future capacity of 8.94 GW for cells and 16.3 GW for modules by FY27. The company also said it is moving into ancillary components in phases and collaborating with Fraunhofer ISE on advanced TOPCon technology and operational efficiency. Management flagged wafer and ingot capacity of approximately 2 GW as a largely China-dependent localisation bottleneck.
Market reaction is still pending
The results were filed after market close, so the stock had not yet recorded a reaction in the supplied data. After its last four results, the stock rose three times and fell once, with a median absolute move of 8.16%, indicating that post-results moves have generally been sizeable.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹1,576 cr | ₹1,556 cr | +1.34% | +39.38% |
| Other income | ₹3 cr | ₹16 cr | -84.71% | -86.30% |
| Expenses | ₹1,019 cr | ₹1,007 cr | +1.20% | +39.35% |
| Operating profit | ₹557 cr | ₹548 cr | +1.60% | +39.43% |
| Operating margin (%) | 35.33% | 35.24% | — | — |
| Interest | ₹9 cr | ₹11 cr | -14.53% | -82.86% |
| Depreciation | ₹85 cr | ₹84 cr | +0.87% | +19.42% |
| Profit before tax | ₹465 cr | ₹470 cr | -0.92% | +59.53% |
| Tax | ₹83 cr | ₹89 cr | -6.80% | +54.71% |
| Net profit | ₹382 cr | ₹380 cr | +0.46% | +60.62% |
| EPS (₹) | ₹5.52 | ₹5.49 | +0.55% | +37.66% |
Operating margin of 35.33% compares with a Industrials sector median of 14.87% across 6 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.
Guidance & outlook
- Module demand is expected to reach approximately 120 GW per year by FY30.
- Data centers, green hydrogen and round-the-clock power could add another 15-20 GW annually to medium-term demand.
Expansion
- The company plans a 6 GW module and cell expansion at Unit 7 during 2026-2027.
- Future capacity is planned to reach 8.94 GW for cells and 16.3 GW for modules by FY27.
New initiatives
- The company is diversifying into ancillary-component manufacturing in phases to capture a larger share of the bill of materials.
- The company is collaborating with Fraunhofer ISE to explore advanced TOPCon technology and improve operational efficiency.
Competition
- The company says it is one of the few industry players with an integrated TOPCon cell and module manufacturing facility.
Problems & risks
- Wafer and ingot capacity is barely approximately 2 GW and is almost fully China-dependent, creating the next localisation bottleneck.
What to watch
- Whether operating margin holds above 35.33% after its second consecutive quarterly improvement.
- Whether interest expense remains below Rs 9.47 cr as the company expands capacity.
- Progress on management's stated 6 GW Unit 7 expansion and planned FY27 capacity of 8.94 GW for cells and 16.3 GW for modules.