Esab India's margin falls 2.45 points as costs outpace revenue
Standalone net profit fell -12.83% sequentially; interest rose +50.00%, while other income contributed 3.41% of pre-tax profit.
Filed 04 Nov 2026, 21:23 IST · after market close · Esab India Ltd (ESABINDIA)
Key takeaways
- Standalone operating margin fell 2.45 percentage points sequentially as expenses grew +3.73% while revenue rose +0.69%.
- Standalone net profit declined -12.83% sequentially to Rs 48.94 cr as operating profit fell -12.43%.
- Operating margin of 16.35% remained 4.11 percentage points above the 12.24% median for 143 Industrials peers.
Price around the results
Revenue is flat, but operating profit slips
Esab India's standalone revenue rose only +0.69% sequentially to Rs 424.03 cr, while operating profit fell -12.43% to Rs 69.33 cr. The mismatch points to weaker operating leverage in the quarter. Net profit declined -12.83% to Rs 48.94 cr.
Faster expense growth drove the margin squeeze
Expenses increased +3.73%, materially faster than revenue, pulling operating margin down 2.45 percentage points to 16.35%. Interest expense also rose +50.00% sequentially, while the tax rate was broadly stable, increasing just 0.02 percentage points. Other income accounted for 3.41% of pre-tax profit, so it was not a major support to reported earnings.
Margin remains above the Industrials peer median
The 16.35% operating margin was 4.11 percentage points above the 12.24% median among 143 Industrials companies that had reported the quarter. This quarter nevertheless marked a sequential decline from 18.80%. The results were filed after market close, so a market reaction was not yet available.
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 | ₹424 cr | ₹421 cr | +0.69% |
| Other income | ₹2 cr | ₹2 cr | +26.97% |
| Expenses | ₹355 cr | ₹342 cr | +3.73% |
| Operating profit | ₹69 cr | ₹79 cr | -12.43% |
| Operating margin (%) | 16.35% | 18.80% | — |
| Interest | ₹0 cr | ₹0 cr | +50.00% |
| Depreciation | ₹5 cr | ₹5 cr | +4.76% |
| Profit before tax | ₹66 cr | ₹76 cr | -12.80% |
| Tax | ₹17 cr | ₹20 cr | -12.72% |
| Net profit | ₹49 cr | ₹56 cr | -12.83% |
| EPS (₹) | ₹31.80 | ₹36.48 | -12.83% |
Operating margin of 16.35% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 16.35% after the 2.45-percentage-point sequential decline.
- Whether expense growth slows from +3.73% relative to revenue growth of +0.69%.
- Whether interest expense remains close to Rs 0.45 cr after rising +50.00% sequentially.