Revenue and profit fell over 21% sequentially as margins slipped
Expenses declined slightly less than revenue, while lower taxes partly offset higher interest and weaker other income.
Filed 05 Nov 2026, 19:31 IST · after market close · GERMAN (GERMAN)
Key takeaways
- Consolidated revenue fell 21.07% sequentially to Rs 365.51 cr, while net profit declined 22.09% to Rs 16.86 cr.
- Operating margin narrowed by 0.11 percentage points to 9.50% because expenses fell less than revenue.
- A 20.94-percentage-point drop in the tax rate cushioned profit, while other income contributed 14.42% of pre-tax profit.
Q2FY27 revenue decline translated into lower profit
GERMAN's consolidated revenue fell 21.07% sequentially from Q1FY27, and operating profit declined 21.93%. Net profit fell 22.09% to Rs 16.86 cr, with EPS declining 23.88% to Rs 3.06. The results were filed after market close.
Costs and financing pressure limited operating leverage
Expenses fell 20.97%, slightly less than the 21.07% decline in revenue, narrowing operating margin by 0.11 percentage points to 9.50%. Interest expense rose 9.79% sequentially even as pre-tax profit fell 40.40%. Other income fell 40.00% and still represented 14.42% of pre-tax profit, while the tax rate dropped 20.94 percentage points to 10.92%, cushioning net profit.
The available trend shows a modest margin decline
Compared with Q1FY27, operating margin moved from 9.61% to 9.50%, so the latest quarter did not convert the lower revenue base into an improvement in profitability. The sequential comparison is the only direction visible in the reported trend, with no year-on-year comparison provided.
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 | ₹366 cr | ₹463 cr | -21.07% |
| Other income | ₹3 cr | ₹5 cr | -40.00% |
| Expenses | ₹331 cr | ₹419 cr | -20.97% |
| Operating profit | ₹35 cr | ₹45 cr | -21.93% |
| Operating margin (%) | 9.50% | 9.61% | — |
| Interest | ₹13 cr | ₹11 cr | +9.79% |
| Depreciation | ₹6 cr | ₹6 cr | +2.22% |
| Profit before tax | ₹19 cr | ₹32 cr | -40.40% |
| Tax | ₹2 cr | ₹10 cr | -79.55% |
| Net profit | ₹17 cr | ₹22 cr | -22.09% |
| EPS (₹) | ₹3.06 | ₹4.02 | -23.88% |
What to watch
- Whether operating margin holds above 9.50% next quarter.
- Whether interest expense moves back below Rs 12.56 cr.
- Whether the tax rate remains near 10.92% rather than returning toward 31.86%.