Genesys margin slips despite 8.10% sequential revenue growth
Expenses grew faster than revenue, while a 13.14-point tax-rate reduction lifted net profit by 23.30% sequentially.
Filed 13 Nov 2026, 20:33 IST · after market close · Genesys International Corporation Ltd (GENESYS)
Key takeaways
- Consolidated revenue rose +8.10% sequentially, but expenses grew +12.32%, narrowing operating margin by 2.55 percentage points to 32.02%.
- Net profit increased +23.30% sequentially as the tax rate fell 13.14 percentage points to 23.41%, while other income contributed 24.00% of pre-tax profit.
- Genesys reported a 32.02% operating margin, 16.62 percentage points above the 15.40% median for 88 Information Technology peers that have reported.
Price around the results
Revenue grew, but operating profit barely moved
Consolidated revenue rose +8.10% sequentially to Rs 87.95 cr, but operating profit increased only +0.11% to Rs 28.16 cr. Expenses grew +12.32%, outpacing revenue and reducing operating margin by 2.55 percentage points to 32.02%. The results were filed after market close.
Lower tax rate supported profit quality
Net profit rose +23.30% sequentially even as interest expense increased +9.24%; the main support came from the tax rate falling 13.14 percentage points to 23.41%. Other income was 24.00% of pre-tax profit, so reported profit included a material non-operating contribution. EPS nevertheless declined -26.19% sequentially to Rs 0.93.
Margin remains well above the reported IT peer median
Genesys's 32.02% operating margin was 16.62 percentage points above the 15.40% median among 88 Information Technology peers that have reported the quarter. Sequentially, however, margin moved down from 34.57%, making this a deterioration from the previous quarter rather than an improvement.
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 | ₹88 cr | ₹81 cr | +8.10% |
| Other income | ₹2 cr | ₹2 cr | +15.91% |
| Expenses | ₹60 cr | ₹53 cr | +12.32% |
| Operating profit | ₹28 cr | ₹28 cr | +0.11% |
| Operating margin (%) | 32.02% | 34.57% | — |
| Interest | ₹3 cr | ₹3 cr | +9.24% |
| Depreciation | ₹18 cr | ₹18 cr | -0.87% |
| Profit before tax | ₹9 cr | ₹8 cr | +2.16% |
| Tax | ₹2 cr | ₹3 cr | -34.54% |
| Net profit | ₹7 cr | ₹5 cr | +23.30% |
| EPS (₹) | ₹0.93 | ₹1.26 | -26.19% |
Operating margin of 32.02% compares with a Information Technology sector median of 15.40% across 88 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 32.02% after the 2.55-percentage-point sequential decline.
- Whether expense growth moderates from +12.32% against revenue growth of +8.10%.
- Whether the tax rate remains near 23.41% and other income stays below its 24.00% share of pre-tax profit.