Revenue fell 52.22% QoQ as operating margin slid 19.92 points
Costs rose 7.59% even as revenue fell, while other income made up 72.3% of pre-tax profit.
Filed 05 Nov 2026, 14:41 IST · GKW Ltd (GKWLIMITED)
Key takeaways
- Standalone revenue fell -52.22% QoQ to Rs 7.11, while operating margin narrowed 19.92 percentage points to 64.12%.
- Net profit declined -63.54% QoQ to Rs 3.93 as the tax rate rose 7.69 percentage points to 25.5%.
- Other income contributed 72.3% of pre-tax profit, making the Rs 5.27 profit before tax less dependent on operating earnings.
Price around the results
Revenue contraction drove a sharp operating slowdown
GKW Ltd reported standalone revenue of Rs 7.11 in Q2FY27, down -52.22% from Q1FY27. Expenses increased 7.59% sequentially, so operating profit fell -63.52% and operating margin narrowed 19.92 percentage points to 64.12%. The decline was therefore driven by both lower revenue and a cost base that did not reduce with it.
Other income cushioned a weaker operating quarter
Other income rose 4.67% QoQ to Rs 3.81 even as operating profit fell -63.52%. It accounted for 72.3% of pre-tax profit, signalling that reported earnings were substantially supported outside operations. Interest also rose 3.32%, while the 7.69-percentage-point increase in the tax rate added to the -63.54% decline in net profit.
Margin remains above the reported sector median
GKW's 64.12% operating margin was 8.33 percentage points above the 55.79% median among 100 Financial Services peers that had reported the quarter. That comparison offers some context for the level of profitability, but the sequential direction was sharply weaker from 84.04% in Q1FY27. Q2FY27 was filed before market close, so a post-results share-price reaction is not covered here.
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 | ₹7 cr | ₹15 cr | -52.22% |
| Other income | ₹4 cr | ₹4 cr | +4.67% |
| Expenses | ₹3 cr | ₹2 cr | +7.59% |
| Operating profit | ₹5 cr | ₹13 cr | -63.52% |
| Operating margin (%) | 64.12% | 84.04% | — |
| Interest | ₹2 cr | ₹2 cr | +3.32% |
| Depreciation | ₹1 cr | ₹1 cr | +1.10% |
| Profit before tax | ₹5 cr | ₹13 cr | -59.83% |
| Tax | ₹1 cr | ₹2 cr | -42.74% |
| Net profit | ₹4 cr | ₹11 cr | -63.54% |
| EPS (₹) | ₹6.58 | ₹18.07 | -63.59% |
Operating margin of 64.12% compares with a Financial Services sector median of 55.79% across 100 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.52% | -0.49% |
Volume on the results session was 0.84× its 20-day average.
What to watch
- Whether revenue moves up from Rs 7.11 in the next reported quarter.
- Whether operating margin recovers from 64.12% after the 19.92-percentage-point sequential decline.
- Whether other income remains a major earnings contributor after accounting for 72.3% of pre-tax profit.