EMS Ltd expands operating margin as revenue grows 23.31% QoQ
Costs grew more slowly than revenue, while a lower tax rate also supported the 51.19% sequential rise in net profit.
Filed 12 Nov 2026, 16:47 IST · after market close · EMS Ltd (EMSLIMITED)
Key takeaways
- Consolidated revenue grew 23.31% QoQ, outpacing expense growth of 20.38%.
- Operating margin expanded 1.99 percentage points to 18.55% as revenue growth exceeded cost growth.
- Other income accounted for 8.71% of consolidated profit before tax, while the tax rate fell 0.96 percentage points QoQ.
Price around the results
Revenue growth lifted operating profit
EMS Ltd's consolidated revenue increased 23.31% QoQ, while expenses rose 20.38%, allowing operating profit to grow faster at 38.10%. Net profit increased 51.19% sequentially, helped by the operating gain and lower tax rate.
Cost control widened the operating spread
Operating margin improved by 1.99 percentage points because costs grew more slowly than revenue. Interest expense was unchanged sequentially, but depreciation increased 7.94%. The 0.96-percentage-point decline in the tax rate also supported reported profit, while other income contributed 8.71% of profit before tax.
Margin stayed below the Utilities peer median
EMS Ltd's 18.55% operating margin was 9.44 percentage points below the 27.99% median for the 31 Utilities peers that had reported the quarter. It ranked 12th from the bottom on this measure, despite the sequential improvement.
Results filed after market close
EMS Ltd filed its consolidated Q2FY27 results after market close. The immediate stock reaction is therefore not part of this update.
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 | ₹194 cr | ₹157 cr | +23.31% |
| Other income | ₹3 cr | ₹2 cr | +29.86% |
| Expenses | ₹158 cr | ₹131 cr | +20.38% |
| Operating profit | ₹36 cr | ₹26 cr | +38.10% |
| Operating margin (%) | 18.55% | 16.56% | — |
| Interest | ₹5 cr | ₹5 cr | +0.00% |
| Depreciation | ₹2 cr | ₹2 cr | +7.94% |
| Profit before tax | ₹31 cr | ₹21 cr | +49.24% |
| Tax | ₹8 cr | ₹6 cr | +43.83% |
| Net profit | ₹23 cr | ₹15 cr | +51.19% |
| EPS (₹) | ₹4.22 | ₹2.79 | +51.25% |
Operating margin of 18.55% compares with a Utilities sector median of 27.99% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 18.55% after its 1.99-percentage-point QoQ improvement.
- Whether expense growth stays below the 23.31% revenue growth rate.
- Whether other income remains a similar share of profit before tax to 8.71%.