Everest Industries' profit plunges as other income dries up
Consolidated operating margin fell 3.6 percentage points QoQ as costs declined less than revenue, while the tax rate rose to 77.52%.
Filed 26 Oct 2026, 19:40 IST · after market close · EVERESTIND (EVERESTIND)
Key takeaways
- Revenue change was -26.91% sequentially while expenses change was -23.99%, narrowing operating margin by 3.60 percentage points.
- Net profit change was -97.97% sequentially as the tax rate rose by 60.69 percentage points to 77.52%.
- Other income represented 47.18% of pre-tax profit, making reported earnings materially less reflective of operating performance.
Revenue decline outpaced the cost reduction
In consolidated Q2FY27, revenue change was -26.91% sequentially, while expenses change was -23.99%. The smaller decline in expenses meant costs grew relative to revenue, and operating profit change was -52.83%. Operating margin consequently narrowed by 3.60 percentage points to 6.53%.
Other income and tax rate reshaped profit
Other income change was -95.38% sequentially, although it still accounted for 47.18% of pre-tax profit in Q2FY27. The tax rate increased from 16.83% to 77.52%, a rise of 60.69 percentage points. That combination left net profit change at -97.97% sequentially.
Q2 was weaker than Q1 on operating momentum
Operating margin fell from 10.13% in Q1FY27 to 6.53% in Q2FY27, extending the sequential deterioration visible in the available quarter-to-quarter comparison. Interest expense also increased 11.03%, adding to the pressure below operating profit. The company filed its consolidated results after market close on 26 Oct 2026.
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 | ₹319 cr | ₹436 cr | -26.91% |
| Other income | ₹4 cr | ₹94 cr | -95.38% |
| Expenses | ₹298 cr | ₹392 cr | -23.99% |
| Operating profit | ₹21 cr | ₹44 cr | -52.83% |
| Operating margin (%) | 6.53% | 10.13% | — |
| Interest | ₹6 cr | ₹6 cr | +11.03% |
| Depreciation | ₹10 cr | ₹10 cr | -1.32% |
| Profit before tax | ₹9 cr | ₹123 cr | -92.49% |
| Tax | ₹7 cr | ₹21 cr | -65.39% |
| Net profit | ₹2 cr | ₹102 cr | -97.97% |
| EPS (₹) | ₹1.31 | ₹64.39 | -97.97% |
What to watch
- Whether operating margin recovers from 6.53%.
- Whether expenses continue to decline more slowly than revenue after changes of -23.99% and -26.91%, respectively.
- Whether the tax rate moves down from 77.52% and other income remains a material part of pre-tax profit after its 47.18% share in Q2FY27.