Gayatri Highways profit rests on other income as operating margin turns negative
Consolidated revenue rose sequentially, but expenses grew faster and other income supplied 103.72% of profit before tax.
Filed 12 Nov 2026, 17:59 IST · after market close · Gayatri Highways Ltd (GAYAHWS)
Key takeaways
- Consolidated net profit was Rs 107.63 cr, but other income accounted for 103.72% of profit before tax.
- Operating margin fell 7.59 percentage points sequentially to -0.53% as expenses grew +524.58%, faster than revenue at +477.43%.
- Gayatri Highways ranked fifth from the bottom among 65 Services peers, with operating margin 17.18 percentage points below the sector median.
Price around the results
Other income drove the Q2FY27 profit
Gayatri Highways reported consolidated net profit of Rs 107.63 cr in Q2FY27, compared with a Rs 2.83 cr loss in Q1FY27. The profit was not generated by operations: operating profit was negative Rs 0.22 cr, while other income was Rs 111.62 cr. Other income represented 103.72% of profit before tax, making earnings quality the key issue in the quarter.
Expenses outpaced the revenue rebound
Revenue increased +477.43% sequentially to Rs 40.94 cr, but expenses grew faster at +524.58% to Rs 41.16 cr. That cost gap pushed operating margin down 7.59 percentage points, from 7.06% in Q1FY27 to -0.53% in Q2FY27. Interest was unchanged sequentially at Rs 3.77 cr, while the tax rate change was limited to 0.32 percentage points.
Operating margin was near the bottom of Services peers
Among 65 Services companies that had reported the quarter, Gayatri Highways' -0.53% operating margin was 17.18 percentage points below the sector median of 16.65%. It ranked fifth from the bottom, placing the quarter's operating performance well below the reported peer set.
No market reaction yet
The results were filed after market close on 12 Nov 2026, so there is no reported market reaction to assess yet. With only Q1FY27 available in the supplied trend, the quarter marks a sequential reversal from a 7.06% operating margin to -0.53%, rather than a confirmed multi-quarter pattern.
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 | ₹41 cr | ₹7 cr | +477.43% |
| Other income | ₹112 cr | ₹0 cr | +24165.22% |
| Expenses | ₹41 cr | ₹7 cr | +524.58% |
| Operating profit | ₹-0 cr | ₹1 cr | — |
| Operating margin (%) | -0.53% | 7.06% | — |
| Interest | ₹4 cr | ₹4 cr | +0.00% |
| Depreciation | ₹0 cr | ₹0 cr | — |
| Profit before tax | ₹108 cr | ₹-3 cr | — |
| Tax | ₹-0 cr | ₹0 cr | — |
| Net profit | ₹108 cr | ₹-3 cr | — |
| EPS (₹) | ₹4.49 | ₹-0.12 | — |
Operating margin of -0.53% compares with a Services sector median of 16.65% across 65 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -0.53% in the next reported quarter.
- Whether other income remains the main contributor to profit, against its 103.72% share of Q2FY27 profit before tax.
- Whether expenses continue to grow faster than revenue after the Q2FY27 gap of +524.58% versus +477.43%.