Lower costs lift margin, but higher finance charges cut net profit
Revenue fell 6.26% sequentially, while a lower tax rate limited the decline in net profit to 3.23%.
Filed 13 Nov 2026, 20:30 IST · after market close · HITECHCORP (HITECHCORP)
Key takeaways
- Consolidated revenue fell 6.26% sequentially, but expenses fell faster at 7.04%, lifting operating margin by 0.74 percentage points.
- Net profit declined 3.23% as interest rose 1.79% and depreciation increased 3.69%, despite a 2.56-percentage-point decline in the tax rate.
- Other income contributed 12.08% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Operating profit held up despite lower revenue
This consolidated quarter saw revenue decline 6.26% sequentially to Rs 211.54 cr. Expenses declined faster, by 7.04%, allowing operating profit to rise 0.61% and operating margin to improve by 0.74 percentage points to 10.94%. The improvement therefore came from cost reduction outpacing the revenue decline, rather than from sales growth.
Finance and depreciation costs weighed on pre-tax profit
Interest expense rose 1.79% and depreciation increased 3.69% sequentially, which outweighed the small increase in operating profit and pulled pre-tax profit down 6.36%. The tax rate fell by 2.56 percentage points to 20.83%, cushioning the effect on net profit, which declined 3.23%.
The two-quarter trend shows margin improvement but weaker earnings
Compared with Q1FY27, operating margin improved from 10.20% to 10.94%, while net profit moved lower from Rs 7.11 cr to Rs 6.88 cr. Other income fell 21.05% sequentially but still accounted for 12.08% of pre-tax profit, so earnings quality remains an important consideration alongside the margin improvement.
Results were filed after market close
The results were filed after market close, so there is no market reaction to assess yet. The next response will need to be read against the quarter's mixed profile of lower revenue, better cost control and higher non-operating cost pressure.
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 | ₹212 cr | ₹226 cr | -6.26% |
| Other income | ₹1 cr | ₹1 cr | -21.05% |
| Expenses | ₹188 cr | ₹203 cr | -7.04% |
| Operating profit | ₹23 cr | ₹23 cr | +0.61% |
| Operating margin (%) | 10.94% | 10.20% | — |
| Interest | ₹5 cr | ₹5 cr | +1.79% |
| Depreciation | ₹10 cr | ₹10 cr | +3.69% |
| Profit before tax | ₹9 cr | ₹9 cr | -6.36% |
| Tax | ₹2 cr | ₹2 cr | -16.59% |
| Net profit | ₹7 cr | ₹7 cr | -3.23% |
| EPS (₹) | ₹4.01 | ₹4.14 | -3.14% |
What to watch
- Whether operating margin holds above 10.94%.
- Whether revenue recovers from Rs 211.54 cr without expenses declining more slowly than sales.
- Whether other income's 12.08% share of pre-tax profit reduces.