EPL revenue rises 12.93%, but faster costs narrow operating margin
Net profit grew 10.24% sequentially, while a higher tax rate and increased interest costs limited the conversion of operating growth into earnings.
Filed 04 Nov 2026, 16:46 IST · after market close · EPL Ltd (EPL)
Key takeaways
- Revenue rose 12.93% sequentially, but expenses grew faster at 13.55%, narrowing operating margin by 0.45 percentage points.
- Net profit increased 10.24% sequentially even as the tax rate rose 5.08 percentage points to 27.04%.
- EPL's 18.37% operating margin was 7.22 percentage points above the 11.15% median for 119 reporting Industrials peers.
Price around the results
Revenue growth outpaced earnings growth
In consolidated Q2FY27 results, revenue rose 12.93% sequentially, while operating profit grew 10.26%, showing weaker conversion of sales growth into operating earnings. Net profit increased 10.24%, below the 17.92% rise in profit before tax. The results were filed after market close on 4 November 2026.
Costs and tax diluted the quarter
Expenses grew 13.55%, faster than revenue, which reduced operating margin by 0.45 percentage points to 18.37%. Interest costs rose 12.71%, while the tax rate increased 5.08 percentage points to 27.04%, adding to the pressure below operating profit. Other income contributed 6.71% of profit before tax, so it was a limited but non-zero support to reported earnings.
Margin remains above the Industrials peer median
EPL's 18.37% operating margin was 7.22 percentage points above the 11.15% median among 119 Industrials companies that had reported the same quarter. Sequentially, however, margin moved lower from 18.82%, marking a deterioration from the immediately preceding quarter rather than an expansion in profitability.
Management flags expansion and efficiency plans
Management said all regions delivered growth, with EAP leading at 40.2%, and said the extruded tubes expansion was producing good results. The company told analysts that higher depreciation, a higher effective tax rate and foreign-exchange losses affected PAT growth, while commodity-inflation-led pricing pass-through affected reported EBITDA. Management said it expects PAT growth to recover in coming quarters and is targeting consistent margin improvement, alongside planned geographical expansion in Thailand, a Brazil scale-up and greater global commercialisation of sustainable Platina tubes.
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 | ₹1,567 cr | ₹1,388 cr | +12.93% |
| Other income | ₹10 cr | ₹6 cr | +64.52% |
| Expenses | ₹1,279 cr | ₹1,127 cr | +13.55% |
| Operating profit | ₹288 cr | ₹261 cr | +10.26% |
| Operating margin (%) | 18.37% | 18.82% | — |
| Interest | ₹33 cr | ₹29 cr | +12.71% |
| Depreciation | ₹113 cr | ₹109 cr | +3.66% |
| Profit before tax | ₹152 cr | ₹129 cr | +17.92% |
| Tax | ₹41 cr | ₹28 cr | +45.23% |
| Net profit | ₹111 cr | ₹101 cr | +10.24% |
| EPS (₹) | ₹3.44 | ₹3.08 | +11.69% |
Operating margin of 18.37% compares with a Industrials sector median of 11.15% across 119 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
- All regions delivered strong growth, led by EAP at 40.2%.
- The company reported good results from extruded tubes expansion.
Guidance & outlook
- The company expects PAT growth to recover in coming quarters.
- The company is targeting consistent margin improvement.
Expansion
- The company plans geographical expansion with Thailand.
- The company is planning a Brazil scale-up.
- The company reports that extruded tubes expansion is showing good results.
New initiatives
- The company is pursuing operational efficiencies in net working capital and asset utilisation.
- The company is accelerating global commercialisation of sustainable Platina tubes.
Competition
- The company is a market leader across key markets.
- The company says it continues leadership through product and process innovation.
Problems & risks
- PAT growth was affected by higher depreciation, higher ETR and foreign-exchange losses.
- Reported EBITDA was affected by commodity-inflation-led pricing pass-through.
What to watch
- Whether operating margin recovers from 18.37% after the 0.45-percentage-point sequential decline.
- Whether expense growth falls below the 13.55% sequential pace against revenue growth of 12.93%.
- Whether the tax rate moves down from 27.04% after rising 5.08 percentage points sequentially.