Other income drop cuts Gandhi Special Tubes profit 28.78% QoQ
Revenue grew 1.57%, but expenses rose faster and the tax rate increased 2.41 percentage points.
Filed 03 Nov 2026, 17:28 IST · after market close · Gandhi Special Tubes Ltd (GANDHITUBE)
Key takeaways
- Standalone net profit fell 28.78% QoQ to Rs 19.9 cr as other income dropped 94.99% to Rs 0.52 cr.
- Revenue rose 1.57% QoQ, but expenses grew 2.00%, trimming operating margin by 0.21 percentage points to 46.37%.
- Operating margin was 35.34 percentage points above the Industrials median, based on 108 peers that had reported.
Price around the results
Operating profit held up while reported profit fell
Gandhi Special Tubes reported standalone revenue growth of 1.57% QoQ, while operating profit increased 1.13%. Net profit nevertheless fell 28.78% because other income declined 94.99% from Q1FY27, making up only 1.96% of pre-tax profit in the quarter. This points to a sharp reduction in non-operating support rather than a comparable deterioration in operating profit.
Costs and tax rate put pressure on conversion
Expenses grew 2.00% QoQ against 1.57% revenue growth, so operating margin narrowed by 0.21 percentage points to 46.37%. The tax rate increased 2.41 percentage points to 25.07%, further weighing on the conversion of pre-tax profit into net profit. Interest was unchanged QoQ, while depreciation increased 1.16%.
Margin remains well above the Industrials peer median
The company's 46.37% operating margin was 35.34 percentage points above the 11.03% median for 108 Industrials peers that had reported the same quarter. Compared with Q1FY27, this was a second-quarter margin decline in the available sequence, although the change was limited to 0.21 percentage points. The results were filed after market close on 03 Nov 2026.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹58 cr | ₹57 cr | +1.57% |
| Other income | ₹1 cr | ₹10 cr | -94.99% |
| Expenses | ₹31 cr | ₹31 cr | +2.00% |
| Operating profit | ₹27 cr | ₹27 cr | +1.13% |
| Operating margin (%) | 46.37% | 46.58% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹1 cr | ₹1 cr | +1.16% |
| Profit before tax | ₹27 cr | ₹36 cr | -26.50% |
| Tax | ₹7 cr | ₹8 cr | -18.58% |
| Net profit | ₹20 cr | ₹28 cr | -28.78% |
| EPS (₹) | ₹16.48 | ₹22.99 | -28.32% |
Operating margin of 46.37% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 46.37%.
- Whether expenses continue to grow faster than revenue after rising 2.00% versus revenue growth of 1.57% QoQ.
- Whether other income remains near Rs 0.52 cr after falling 94.99% QoQ.