GCSL margin drops 32.94 percentage points as expenses surge
Revenue rose +101.49% sequentially, but costs grew faster; net profit fell -44.14% and the margin was 43.07 points below the peer median.
Filed 05 Nov 2026, 18:45 IST · after market close · Gretex Corporate Services Ltd (GCSL)
Key takeaways
- Revenue rose +101.49% QoQ, but expenses grew +223.59%, cutting operating margin by 32.94 percentage points to 12.72%.
- Net profit fell -44.14% QoQ to Rs 7.15 cr as operating profit declined -43.84%, while other income contributed 10.13% of pre-tax profit.
- GCSL's 12.72% operating margin was 43.07 percentage points below the 55.79% median of 100 Financial Services peers.
Price around the results
Expense growth erased operating leverage
GCSL's consolidated revenue rose +101.49% QoQ to Rs 75.6 cr, but expenses increased +223.59% to Rs 65.98 cr. Because costs grew faster than revenue, operating profit fell -43.84% to Rs 9.62 cr and the operating margin narrowed by 32.94 percentage points to 12.72%. This was a sharp reversal from the 45.66% margin in Q1FY27.
Other income supported pre-tax profit
Pre-tax profit fell -43.75% QoQ to Rs 9.67 cr, broadly tracking the decline in operating profit. Interest expense rose +8.82%, while depreciation was unchanged; the tax rate increased by 0.50 percentage points to 26.06%. Other income accounted for 10.13% of pre-tax profit, so reported profit was not entirely operating-led.
Margin trails the Financial Services peer median
GCSL's 12.72% operating margin was 43.07 percentage points below the 55.79% median among 100 Financial Services companies that had reported the quarter. With only Q1FY27 available in the quarter trend, the clear sequential direction is a decline from 45.66% to 12.72%, rather than a longer multi-quarter pattern.
Results filed after market close
The company filed these consolidated results after market close on 5 November 2026. The stock's post-results response is therefore not yet part of the readout.
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 | ₹76 cr | ₹38 cr | +101.49% |
| Other income | ₹1 cr | ₹1 cr | +2.08% |
| Expenses | ₹66 cr | ₹20 cr | +223.59% |
| Operating profit | ₹10 cr | ₹17 cr | -43.84% |
| Operating margin (%) | 12.72% | 45.66% | — |
| Interest | ₹0 cr | ₹0 cr | +8.82% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹10 cr | ₹17 cr | -43.75% |
| Tax | ₹3 cr | ₹4 cr | -42.60% |
| Net profit | ₹7 cr | ₹13 cr | -44.14% |
| EPS (₹) | ₹1.98 | ₹3.97 | -50.13% |
Operating margin of 12.72% compares with a Financial Services sector median of 55.79% across 100 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 12.72% after the 32.94 percentage-point QoQ decline.
- Whether expense growth moderates from +223.59% relative to revenue growth of +101.49%.
- Whether other income remains near 10.13% of pre-tax profit.