H.G. Infra margin slips as revenue falls faster than expenses
Consolidated profit returned to positive territory after Q1's loss, but other income still contributed 22.79% of pre-tax profit.
Filed 03 Nov 2026, 17:35 IST · after market close · H.G. Infra Engineering Ltd (HGINFRA)
Key takeaways
- Consolidated operating margin fell 1.97 percentage points sequentially to 25.63% as expenses declined less than revenue.
- Net profit returned to Rs 79.76 cr from a Rs 44.52 cr loss, helped by the reversal of Q1's Rs 141.55 cr other-income loss.
- Operating margin remained 14.14 percentage points above the 11.49% median for 99 Industrials peers that had reported.
Price around the results
Revenue declined, but profit recovered from Q1's loss
Consolidated revenue fell 11.54% sequentially to Rs 973.59 cr, while operating profit declined 17.86% to Rs 249.53 cr. Net profit, however, returned to Rs 79.76 cr from a Rs 44.52 cr loss in Q1, when other income was negative Rs 141.55 cr. The quarter was filed after market close, so there is no reported market reaction yet.
Costs narrowed more slowly than revenue
Expenses declined 9.13% sequentially, slower than the 11.54% fall in revenue, which reduced operating margin by 1.97 percentage points to 25.63%. Interest expense eased 1.33%, but depreciation rose 16.85%, adding pressure below operating profit. Other income contributed 22.79% of pre-tax profit, so reported earnings were not entirely operating-led.
Margin remains well above the Industrials peer median
H.G. Infra's operating margin was 14.14 percentage points above the 11.49% median among 99 Industrials peers that had reported. The margin had risen from 17.59% in Q4FY25 to 27.60% in Q1FY27 before easing in Q2FY27, so the available trend shows a sequential pullback after a sharp earlier improvement. The tax rate also normalized to 23.83% from Q1's unusual negative 10,865.02%, when the company reported a pre-tax loss.
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 | ₹974 cr | ₹1,101 cr | -11.54% |
| Other income | ₹24 cr | ₹-142 cr | — |
| Expenses | ₹724 cr | ₹797 cr | -9.13% |
| Operating profit | ₹250 cr | ₹304 cr | -17.86% |
| Operating margin (%) | 25.63% | 27.60% | — |
| Interest | ₹116 cr | ₹118 cr | -1.33% |
| Depreciation | ₹53 cr | ₹45 cr | +16.85% |
| Profit before tax | ₹105 cr | ₹-0 cr | — |
| Tax | ₹25 cr | ₹44 cr | -43.44% |
| Net profit | ₹80 cr | ₹-45 cr | — |
| EPS (₹) | ₹12.24 | ₹-6.83 | — |
Operating margin of 25.63% compares with a Industrials sector median of 11.49% across 99 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 25.63% after the 1.97-percentage-point sequential decline.
- Whether revenue recovers from Rs 973.59 cr without expenses growing faster than sales.
- Whether other income remains a smaller contributor than 22.79% of pre-tax profit.