FOCUS margin falls 3.53 points as costs outpace revenue
Net profit edged up 2.79% as the tax rate fell 16.99 points; other income made up 48.16% of pre-tax profit.
Filed 06 Nov 2026, 16:42 IST · after market close · FOCUS (FOCUS)
Key takeaways
- Consolidated revenue rose +19.44% QoQ to Rs 58.36 cr, but operating profit fell -13.73% as expenses grew +24.26%.
- Operating margin narrowed 3.53 percentage points to 9.14% QoQ because costs grew faster than revenue.
- Net profit rose +2.79% to Rs 2.95 cr as the tax rate fell 16.99 percentage points, while other income was 48.16% of pre-tax profit.
Revenue grew, but operating profit contracted
On a consolidated basis, revenue increased +19.44% sequentially, but operating profit declined -13.73%. Expenses rose +24.26%, faster than revenue, reducing operating margin from 12.67% in Q1FY27 to 9.14% in Q2FY27. This marks a sequential margin decline of 3.53 percentage points.
Lower tax rate supported net profit quality
Pre-tax profit fell -16.41% QoQ even as interest expense declined -19.72%, because depreciation increased +14.07% and operating profit weakened. Net profit nevertheless rose +2.79%, helped by the tax rate falling 16.99 percentage points to 9.39%. Other income accounted for 48.16% of pre-tax profit, making it a significant part of reported earnings.
The filing came after market close
The company filed these consolidated results after market close on 06 Nov 2026. The results are therefore too fresh for a post-results stock reaction to assess.
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 | ₹58 cr | ₹49 cr | +19.44% |
| Other income | ₹2 cr | ₹1 cr | +41.44% |
| Expenses | ₹53 cr | ₹43 cr | +24.26% |
| Operating profit | ₹5 cr | ₹6 cr | -13.73% |
| Operating margin (%) | 9.14% | 12.67% | — |
| Interest | ₹1 cr | ₹1 cr | -19.72% |
| Depreciation | ₹3 cr | ₹3 cr | +14.07% |
| Profit before tax | ₹3 cr | ₹4 cr | -16.41% |
| Tax | ₹0 cr | ₹1 cr | -69.90% |
| Net profit | ₹3 cr | ₹3 cr | +2.79% |
| EPS (₹) | ₹0.48 | ₹0.42 | +14.29% |
What to watch
- Whether operating margin holds above 9.14% after the sequential decline.
- Whether expense growth remains below the Q2FY27 rate of +24.26%.
- Whether other income stays below its Q2FY27 contribution of 48.16% of pre-tax profit.