Great Eastern Shipping profit doubles YoY, but margin slips sequentially
Revenue growth outpaced expenses YoY, while lower tax and other income made a sizeable contribution to reported profit.
Filed 06 Nov 2026, 16:44 IST · after market close · Great Eastern Shipping Company Ltd (GESHIP)
Key takeaways
- Consolidated operating profit rose 58.95% year on year as revenue grew 46.92% while expenses increased 29.87%, lifting operating margin by 4.8 percentage points.
- Sequentially, revenue fell 9.02% and operating margin narrowed 3.28 percentage points because expenses were broadly flat at -0.07%.
- Net profit growth was supported by other income contributing 31.58% of pre-tax profit and a tax rate of 2.06%, down 1.15 percentage points year on year.
Price around the results
Operating leverage drove the year-on-year profit increase
On a consolidated basis, revenue grew 46.92% year on year while expenses grew 29.87%, allowing operating profit to rise 58.95%. The resulting 63.43% operating margin was 4.8 percentage points higher, showing that revenue growth outpaced the cost base. Interest expense also fell 58.87%, adding support below operating profit.
Sequential margin decline followed a revenue slowdown
Revenue declined 9.02% from Q1FY27, while expenses were almost unchanged at -0.07%; that mismatch narrowed operating margin by 3.28 percentage points. Operating profit consequently fell 13.49% sequentially, despite interest expense declining 9.98%. The margin remains above Q4FY26's 62.29%, but below the 66.71% recorded in Q1FY27.
Other income and tax rate remain important to profit quality
Other income was equivalent to 31.58% of pre-tax profit, so a sizeable part of reported earnings came outside operations. The tax rate fell to 2.06% from 3.21% a year earlier and 4.10% in the previous quarter, which also supported net profit. Across the five quarters shown, operating margin has generally risen from 53.50% in Q1FY26, with the latest quarter breaking the recent climb from the Q1FY27 peak.
Margin is far above the reported Services peer median
Great Eastern Shipping's 63.43% operating margin was 44.12 percentage points above the 19.31% median for the 59 Services peers that had reported the same quarter. The results were filed after market close, so there is no current market reaction to assess. In the eight prior result reactions recorded, the stock rose six times and fell twice, with a median absolute move of 2.61%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,824 cr | ₹2,005 cr | -9.02% | +46.92% |
| Other income | ₹409 cr | ₹281 cr | +45.71% | +192.31% |
| Expenses | ₹667 cr | ₹668 cr | -0.07% | +29.87% |
| Operating profit | ₹1,157 cr | ₹1,338 cr | -13.49% | +58.95% |
| Operating margin (%) | 63.43% | 66.71% | — | — |
| Interest | ₹18 cr | ₹20 cr | -9.98% | -58.87% |
| Depreciation | ₹253 cr | ₹234 cr | +8.03% | +12.93% |
| Profit before tax | ₹1,296 cr | ₹1,365 cr | -5.05% | +115.73% |
| Tax | ₹27 cr | ₹56 cr | -52.38% | +38.25% |
| Net profit | ₹1,269 cr | ₹1,309 cr | -3.03% | +118.30% |
| EPS (₹) | ₹89.11 | ₹91.68 | -2.80% | +118.84% |
Operating margin of 63.43% compares with a Services sector median of 19.31% across 59 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 63.43% after Q1FY27's 66.71%.
- Whether revenue returns from the sequential decline of 9.02%.
- Whether other income remains near 31.58% of pre-tax profit and the tax rate remains near 2.06%.