Interest cost outweighed operating profit in FCS Software's Q2
Operating margin trailed the 58-peer IT median by 10.18 percentage points, while the results were filed after market close.
Filed 04 Nov 2026, 17:18 IST · after market close · FCS Software Solutions Ltd (FCSSOFT)
Key takeaways
- Interest of Rs 1.43 cr exceeded operating profit of Rs 1.35 cr, leaving reported profit dependent on other income of Rs 1.63 cr.
- Consolidated operating margin was 8.82%, 10.18 percentage points below the 19.0% median for 58 reported IT peers.
- Net profit was Rs 0.33 cr despite a 43.45% tax rate, with other income exceeding profit before tax of Rs 0.58 cr.
Price around the results
Operating profit was absorbed by finance costs
These consolidated results show operating profit of Rs 1.35 cr, but interest expense alone was higher at Rs 1.43 cr. Depreciation of Rs 0.97 cr added to the reduction between operating profit and profit before tax. Other income of Rs 1.63 cr exceeded profit before tax of Rs 0.58 cr, making reported profit reliant on non-operating income.
Margin was below the reported IT peer median
FCS Software's operating margin was 8.82%, compared with a 19.0% median among 58 Information Technology peers that had reported the same quarter. The company's margin was therefore 10.18 percentage points below that median and ranked 10th from the bottom. With no sequential or year-on-year comparison in this release, the quarter's margin level is the clearest operating benchmark.
Results were filed after market close
The consolidated results were filed at 17:18 IST on 4 November 2026, after market close. No post-results stock reaction is available yet, so the market response cannot be assessed against the stock's past results-day moves.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹15 cr |
| Other income | ₹2 cr |
| Expenses | ₹14 cr |
| Operating profit | ₹1 cr |
| Operating margin (%) | 8.82% |
| Interest | ₹1 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹0.00 |
Operating margin of 8.82% compares with a Information Technology sector median of 19.00% across 58 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves above or below 8.82% in the next reported quarter.
- Whether interest expense remains above the current operating profit benchmark of Rs 1.35 cr.
- Whether other income remains a material support against profit before tax of Rs 0.58 cr.