Margin improved, but tax above profit pushed Integra Essentia into a loss
Revenue growth outpaced expenses sequentially, yet a 101.31% tax rate erased Rs 1.66 cr of pre-tax profit.
Filed 02 Nov 2026, 13:20 IST · Integra Essentia Ltd (ESSENTIA)
Key takeaways
- Consolidated revenue rose 26.86% QoQ to Rs 141.97 cr as expenses grew 25.44%, lifting operating margin by 1.12 percentage points to 1.93%.
- A 101.31% tax rate turned Rs 1.66 cr of pre-tax profit into a Rs 0.02 cr net loss, while other income contributed 65.06% of pre-tax profit.
- The stock fell 2.20% on the results date, while the company's 1.93% operating margin was 11.59 percentage points below the Services peer median.
Price around the results
Revenue growth outpaced costs in Q2FY27
This consolidated quarter showed revenue rising 26.86% QoQ to Rs 141.97 cr, ahead of the 25.44% increase in expenses. That operating leverage lifted operating profit 200.00% and expanded operating margin by 1.12 percentage points to 1.93%. The margin nevertheless remained thin.
Tax charge erased a small pre-tax profit
Net profit slipped from Rs 0.02 cr in Q1FY27 to a Rs 0.02 cr loss even though pre-tax profit rose 86.52% QoQ to Rs 1.66 cr. Tax increased 93.10% and the tax rate rose 3.44 percentage points to 101.31%, exceeding pre-tax profit. Other income accounted for 65.06% of pre-tax profit, making earnings quality dependent on non-operating income; interest fell 76.14%, but depreciation rose 676.00%.
Operating margin remains near the bottom of its peer set
Integra Essentia's 1.93% operating margin was 11.59 percentage points below the 13.52% median for 32 Services peers that had reported the quarter. It ranked fourth from the bottom among those peers. Sequentially, margin improved from 0.81% in Q1FY27, but the low base leaves a wide gap to the sector comparison.
Shares fell 2.20% on the results date
The stock declined 2.20% on 2 November, the results date, and underperformed its benchmark by 3.88 percentage points. With no longer-term reaction history provided, the day's move cannot be classified against the company's usual post-results pattern.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹142 cr | ₹112 cr | +26.86% |
| Other income | ₹1 cr | ₹1 cr | -2.70% |
| Expenses | ₹139 cr | ₹111 cr | +25.44% |
| Operating profit | ₹3 cr | ₹1 cr | +200.00% |
| Operating margin (%) | 1.93% | 0.81% | — |
| Interest | ₹0 cr | ₹1 cr | -76.14% |
| Depreciation | ₹2 cr | ₹0 cr | +676.00% |
| Profit before tax | ₹2 cr | ₹1 cr | +86.52% |
| Tax | ₹2 cr | ₹1 cr | +93.10% |
| Net profit | ₹-0 cr | ₹0 cr | — |
| EPS (₹) | ₹0.00 | ₹0.00 | — |
Operating margin of 1.93% compares with a Services sector median of 13.52% across 32 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.20% | -3.88% |
Volume on the results session was 1.20× its 20-day average.
What to watch
- Whether operating margin holds above 1.93% after the sequential improvement from 0.81%.
- Whether the tax rate moves below 101.31% and allows pre-tax profit to reach net profit.
- Whether other income's 65.06% contribution to pre-tax profit declines.