eMudhra revenue rises, but cost growth cuts operating margin by 9.15 points
Standalone expenses grew 21.98% QoQ against 7.99% revenue growth, while a higher tax rate and interest expense added pressure to profit.
Filed 04 Nov 2026, 19:34 IST · after market close · eMudhra Ltd (EMUDHRA)
Key takeaways
- Standalone revenue rose 7.99% QoQ to Rs 71.39 cr, but operating margin fell 9.15 percentage points to 20.30%.
- Expenses grew 21.98% QoQ, outpacing revenue growth and pulling net profit down 30.76% to Rs 8.60 cr.
- Operating margin was 1.30 percentage points above the 19.00% median of 58 reported IT peers.
Price around the results
Revenue grew, but earnings declined sequentially
eMudhra's standalone revenue increased 7.99% QoQ to Rs 71.39 cr, but operating profit fell 25.58% to Rs 14.49 cr. Net profit declined 30.76% to Rs 8.60 cr, while EPS fell 30.67% to Rs 1.04. This was a growth quarter on revenue, but not on operating earnings.
Expense growth drove the margin contraction
Expenses rose 21.98% QoQ, well ahead of the 7.99% increase in revenue, reducing operating margin by 9.15 percentage points to 20.30%. Interest expense increased 333.33%, while the tax rate rose 3.45 percentage points to 28.62%. Other income accounted for 14.19% of profit before tax, making it a meaningful component of reported profit.
Margin stayed above the IT peer median
The 20.30% operating margin was 1.30 percentage points above the 19.00% median for 58 Information Technology peers that had reported the same quarter. The available sequential trend nevertheless shows a sharp margin decline from 29.45% in Q1FY27, alongside the fall in operating profit.
Results were filed after market close
The company filed its standalone Q2FY27 results after market close on 4 November 2026 at 19:34 IST.
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 | ₹71 cr | ₹66 cr | +7.99% |
| Other income | ₹2 cr | ₹1 cr | +35.71% |
| Expenses | ₹57 cr | ₹47 cr | +21.98% |
| Operating profit | ₹14 cr | ₹19 cr | -25.58% |
| Operating margin (%) | 20.30% | 29.45% | — |
| Interest | ₹0 cr | ₹0 cr | +333.33% |
| Depreciation | ₹4 cr | ₹4 cr | -1.71% |
| Profit before tax | ₹12 cr | ₹17 cr | -27.41% |
| Tax | ₹3 cr | ₹4 cr | -17.46% |
| Net profit | ₹9 cr | ₹12 cr | -30.76% |
| EPS (₹) | ₹1.04 | ₹1.50 | -30.67% |
Operating margin of 20.30% compares with a Information Technology sector median of 19.00% across 58 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 20.30% after the 9.15-percentage-point sequential decline.
- Whether expense growth moderates from 21.98% against the 7.99% revenue growth rate.
- Whether the tax rate moves below 28.62% and other income remains within 14.19% of profit before tax.