Net profit rises +141.50% YoY despite a -5.80% revenue decline
Other income contributed 40.99% of pre-tax profit, while operating margin fell 0.97 percentage points sequentially.
Filed 13 Aug 2026, 19:45 IST · after market close · Engineers India Ltd (ENGINERSIN)
Key takeaways
- Consolidated net profit rose +141.50% YoY even as revenue fell -5.80%.
- Operating margin improved 7.14 percentage points YoY as expenses fell -13.14%, faster than revenue.
- Other income accounted for 40.99% of pre-tax profit, making earnings quality a key feature of the quarter.
Price around the results
Profit growth came despite lower revenue
Engineers India’s consolidated revenue fell -5.80% YoY, but operating profit rose +75.39% as expenses declined -13.14%. Net profit therefore increased +141.50%, helped by other income rising +178.24% YoY. Other income contributed 40.99% of pre-tax profit, while the tax rate fell 7.5 percentage points to 19.76%, also supporting the net profit increase.
Sequential margin decline extends the downtrend
Quarter-on-quarter, revenue fell -11.49% while expenses declined only -10.47%, so operating margin narrowed 0.97 percentage points. This was the second straight quarterly margin decline, from 29.1% in Q3FY26 to 16.39% in Q4FY26 and 15.42% in Q1FY27. Interest rose +45.71% sequentially, although its absolute level remained low.
Margin stayed above the Industrials peer median
Engineers India’s 15.42% operating margin was 1.0 percentage point above the 14.42% median among 138 Industrials peers that had reported the quarter. The results were filed after market close, so no post-result market move is reported yet. Across the last eight results, the stock rose after five and fell after three, with a median absolute move of 5.43%, pointing to a mixed historical reaction pattern.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹820 cr | ₹926 cr | -11.49% | -5.80% |
| Other income | ₹81 cr | ₹101 cr | -20.38% | +178.24% |
| Expenses | ₹693 cr | ₹774 cr | -10.47% | -13.14% |
| Operating profit | ₹126 cr | ₹152 cr | -16.72% | +75.39% |
| Operating margin (%) | 15.42% | 16.39% | — | — |
| Interest | ₹1 cr | ₹0 cr | +45.71% | -17.74% |
| Depreciation | ₹10 cr | ₹11 cr | -9.44% | -7.20% |
| Profit before tax | ₹197 cr | ₹242 cr | -18.67% | +118.89% |
| Tax | ₹39 cr | ₹46 cr | -16.31% | +58.67% |
| Net profit | ₹158 cr | ₹196 cr | -19.22% | +141.50% |
| EPS (₹) | ₹2.81 | ₹3.47 | -19.02% | +142.24% |
Operating margin of 15.42% compares with a Industrials sector median of 14.42% across 138 peers that have reported Q1FY27.
What to watch
- Whether operating margin stabilises above 15.42% after two consecutive quarterly declines.
- Whether other income’s 40.99% share of pre-tax profit moderates.
- Whether revenue recovers from Rs 819.84 cr while expenses continue to decline faster than revenue.