Revenue growth lifts Exicom into operating profit, but margin remains thin
Q2 revenue grew +17.30% QoQ as expenses rose +9.52%, while the consolidated net loss narrowed to Rs 56.78 cr.
Filed 04 Nov 2026, 14:12 IST · Exicom Tele-Systems Ltd (EXICOM)
Key takeaways
- Consolidated revenue rose +17.30% QoQ while expenses grew +9.52%, lifting operating margin by 7.06 percentage points to 0.45%.
- Net loss narrowed 22.82% QoQ to Rs 56.78 cr, even as interest and depreciation increased +5.86% and +10.63%.
- Exicom's 0.45% operating margin was 11.79 percentage points below the 12.24% median for 143 reported Industrials peers.
Price around the results
Revenue rebound turns the operating result positive
Consolidated revenue grew +17.30% QoQ, faster than the +9.52% increase in expenses. That operating leverage moved the company from a Rs 21.90 cr operating loss in Q1FY27 to Rs 1.76 cr of operating profit, lifting margin by 7.06 percentage points. The improvement was sequential, but the resulting 0.45% margin remains narrow.
Higher depreciation and interest keep Exicom in the red
Interest expense rose +5.86% QoQ and depreciation increased +10.63%, limiting the benefit of the operating recovery. Consolidated net loss narrowed 22.82% to Rs 56.78 cr, while the tax expense rose +60.39% and the reported tax rate moved to -4.55%. Other income represented -7.51% of pre-tax profit, so it was not a meaningful support to earnings.
Operating margin remains near the bottom of the Industrials pack
Exicom's 0.45% operating margin was 11.79 percentage points below the 12.24% median among 143 Industrials peers that had reported the quarter. Its margin ranked fourth from the bottom, despite the 7.06-percentage-point improvement from Q1FY27.
Shares rise 11.54% on the results date
The stock gained +11.54% on November 4, with a +0.58% opening gap and +10.91% relative performance. Trading volume was 3.74 times the reference level.
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 | ₹388 cr | ₹331 cr | +17.30% |
| Other income | ₹4 cr | ₹5 cr | -17.24% |
| Expenses | ₹387 cr | ₹353 cr | +9.52% |
| Operating profit | ₹2 cr | ₹-22 cr | — |
| Operating margin (%) | 0.45% | -6.61% | — |
| Interest | ₹17 cr | ₹16 cr | +5.86% |
| Depreciation | ₹43 cr | ₹39 cr | +10.63% |
| Profit before tax | ₹-54 cr | ₹-72 cr | +24.61% |
| Tax | ₹2 cr | ₹2 cr | +60.39% |
| Net profit | ₹-57 cr | ₹-74 cr | +22.82% |
| EPS (₹) | ₹-3.66 | ₹-4.98 | +26.51% |
Operating margin of 0.45% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +11.54% | +10.91% |
Volume on the results session was 3.74× its 20-day average.
What to watch
- Whether operating margin holds above 0.45% after the 7.06-percentage-point QoQ improvement.
- Whether interest and depreciation growth of +5.86% and +10.63% moderates.
- Whether net loss improves from Rs 56.78 cr without relying on other income, which represented -7.51% of pre-tax profit.