GEECEE's margin jumps 43.75 points even as revenue falls 60.87%
Expenses contracted faster than revenue, while lower interest and tax costs lifted net profit despite nearly flat operating profit.
Filed 03 Nov 2026, 12:38 IST · GEECEE (GEECEE)
Key takeaways
- Consolidated operating margin expanded 43.75 percentage points QoQ to 73.13% as expenses fell 85.12% against a revenue decline of 60.87%.
- Net profit rose 21.28% QoQ to Rs 10.2 cr despite revenue falling 60.87%, helped by a 97.16% drop in interest and an 11.57 percentage-point fall in the tax rate.
- Other income accounted for 7.12% of pre-tax profit, adding a non-operating component to reported earnings.
Expenses drove the sharp margin expansion
In consolidated Q2FY27 results, revenue fell 60.87% QoQ, but expenses declined faster at 85.12%. That mismatch lifted operating margin by 43.75 percentage points to 73.13%, even as operating profit slipped 2.58%. The result points to a sharply lower cost base as the main reason margins widened.
Lower interest and tax lifted net profit
Pre-tax profit increased 6.39% QoQ because interest expense fell 97.16%, more than offsetting the revenue decline. Net profit grew 21.28% as the tax rate dropped 11.57 percentage points to 5.76%. Other income made up 7.12% of pre-tax profit, so earnings were not entirely generated by operations.
Sequential comparison shows a mixed quarter
Compared with Q1FY27, the quarter delivered much higher margins and net profit but sharply lower revenue. The operating margin moved from 29.38% to 73.13%, while EPS rose 21.39% to Rs 4.88. With only one earlier quarter in the available trend, the data does not establish a multi-quarter direction.
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 | ₹14 cr | ₹37 cr | -60.87% |
| Other income | ₹1 cr | ₹1 cr | -39.37% |
| Expenses | ₹4 cr | ₹26 cr | -85.12% |
| Operating profit | ₹11 cr | ₹11 cr | -2.58% |
| Operating margin (%) | 73.13% | 29.38% | — |
| Interest | ₹0 cr | ₹1 cr | -97.16% |
| Depreciation | ₹0 cr | ₹1 cr | -11.11% |
| Profit before tax | ₹11 cr | ₹10 cr | +6.39% |
| Tax | ₹1 cr | ₹2 cr | -64.77% |
| Net profit | ₹10 cr | ₹8 cr | +21.28% |
| EPS (₹) | ₹4.88 | ₹4.02 | +21.39% |
What to watch
- Whether operating margin holds above 73.13%.
- Whether expenses remain below the Q1FY27 level after falling 85.12% QoQ.
- Whether the tax rate stays near 5.76% and other income remains around 7.12% of pre-tax profit.