Foseco India's margin slips as costs outpace revenue growth
QoQ profit growth was helped by a lower tax rate and reduced interest costs, while other income remained material to pre-tax earnings.
Filed 06 Nov 2026, 18:56 IST · after market close · Foseco India Ltd (FOSECOIND)
Key takeaways
- Foseco India's consolidated net profit rose 10.41% sequentially in Q2FY27 even as operating margin narrowed 0.8 percentage points.
- Expenses grew 10.07% sequentially, faster than revenue at 8.94%, driving the margin squeeze.
- Other income contributed 11.46% of pre-tax profit, while the tax rate fell 3.1 percentage points to support earnings.
Price around the results
Sequential growth came with weaker operating leverage
Foseco India's consolidated revenue increased 8.94% sequentially, but operating profit grew 5.15%, showing that incremental sales converted less efficiently. Net profit still rose 10.41%, helped by a 3.1 percentage-point fall in the tax rate and a 37.5% decline in interest.
Expense growth squeezed the 22.18% margin
Expenses grew 10.07%, outpacing revenue growth of 8.94%, and operating margin fell 0.8 percentage points to 22.18%. Other income accounted for 11.46% of pre-tax profit, so reported earnings included a material non-operating contribution.
Margin remained above the reported Commodities peer median
Foseco India's operating margin was 9.35 percentage points above the 12.83% median for 137 Commodities peers that had reported the same quarter. The comparison puts the sequential margin decline in context: profitability was lower than in Q1FY27, but remained above the sector reference point.
Results were filed after market close
The company filed these consolidated results after market close on 06 Nov 2026. The next comparison will show whether operating margin moves back from 22.18% and whether the tax rate remains below Q1FY27's 27.37%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹252 cr | ₹231 cr | +8.94% |
| Other income | ₹6 cr | ₹5 cr | +18.06% |
| Expenses | ₹196 cr | ₹178 cr | +10.07% |
| Operating profit | ₹56 cr | ₹53 cr | +5.15% |
| Operating margin (%) | 22.18% | 22.98% | — |
| Interest | ₹0 cr | ₹0 cr | -37.50% |
| Depreciation | ₹9 cr | ₹8 cr | +9.10% |
| Profit before tax | ₹53 cr | ₹50 cr | +5.89% |
| Tax | ₹13 cr | ₹14 cr | -6.12% |
| Net profit | ₹40 cr | ₹36 cr | +10.41% |
| EPS (₹) | ₹49.30 | ₹44.74 | +10.19% |
Operating margin of 22.18% compares with a Commodities sector median of 12.83% across 137 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 22.18% after its 0.8 percentage-point sequential decline.
- Whether expenses continue to outpace revenue after growing 10.07% versus 8.94% sequentially.
- Whether other income's 11.46% share of pre-tax profit persists or declines.