Expenses outpace revenue as Geekay Wires' operating margin falls
Revenue rose +75.29% QoQ, but a +152.55% jump in interest expense pushed net profit down -33.80%.
Filed 05 Nov 2026, 14:21 IST · Geekay Wires Ltd (GEEKAYWIRE)
Key takeaways
- Revenue rose +75.29% QoQ, but expenses grew faster at +79.73%, cutting operating margin by 2.38 percentage points to 3.51%.
- Net profit fell -33.80% QoQ as interest expense rose +152.55% and depreciation increased +28.34%.
- Other income equalled 114.18% of pre-tax profit, making the Rs 3.82 cr net profit heavily reliant on non-operating income.
Price around the results
Revenue growth came with weaker operating leverage
Geekay Wires reported standalone revenue growth of +75.29% QoQ to Rs 166.42 cr, but expenses grew faster at +79.73% to Rs 160.57 cr. That cost mismatch reduced operating margin by 2.38 percentage points to 3.51%, even as operating profit increased +4.65% to Rs 5.85 cr. The margin fell from 5.89% in Q1FY27, marking a sequential deterioration.
Higher finance costs cut into reported profit
Interest expense rose +152.55% QoQ to Rs 3.46 cr, while depreciation increased +28.34% to Rs 3.17 cr; together, these more than offset the modest rise in operating profit. Profit before tax fell -28.66% and net profit declined -33.80% to Rs 3.82 cr. The tax rate also rose by 5.42 percentage points to 30.59%, so the quarter did not benefit from a lower tax burden.
Operating margin trails the Industrials peer median
Geekay Wires' 3.51% operating margin was 7.99 percentage points below the 11.50% median for 178 Industrials peers that had reported the same quarter. Its margin ranked 14th from the bottom, placing the company near the lower end of the reported peer set.
Other income was central to the profit outcome
Other income of Rs 6.28 cr represented 114.18% of pre-tax profit, exceeding the Rs 5.50 cr reported pre-tax profit. This makes the quarter's earnings quality weaker than the net profit figure alone suggests. The stock fell -6.40% on the result day, with a -4.04% opening gap and trading volume at 1.52 times the reference level.
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 | ₹166 cr | ₹95 cr | +75.29% |
| Other income | ₹6 cr | ₹6 cr | +5.37% |
| Expenses | ₹161 cr | ₹89 cr | +79.73% |
| Operating profit | ₹6 cr | ₹6 cr | +4.65% |
| Operating margin (%) | 3.51% | 5.89% | — |
| Interest | ₹3 cr | ₹1 cr | +152.55% |
| Depreciation | ₹3 cr | ₹2 cr | +28.34% |
| Profit before tax | ₹6 cr | ₹8 cr | -28.66% |
| Tax | ₹2 cr | ₹2 cr | -13.40% |
| Net profit | ₹4 cr | ₹6 cr | -33.80% |
| EPS (₹) | ₹0.37 | ₹5.52 | -93.30% |
Operating margin of 3.51% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.40% | -8.81% |
Volume on the results session was 1.52× its 20-day average.
What to watch
- Whether operating margin recovers from 3.51% after falling 2.38 percentage points QoQ.
- Whether interest expense declines from Rs 3.46 cr after rising +152.55% QoQ.