Hitech Gear expands margin as revenue growth edges ahead of costs
Consolidated profit before tax more than doubled sequentially, but other income contributed 18.97% of the pre-tax result.
Filed 04 Nov 2026, 19:14 IST · after market close · HITECHGEAR (HITECHGEAR)
Key takeaways
- Revenue grew +19.90% QoQ while expenses grew +18.98%, lifting operating margin by 0.68 percentage points to 11.76%.
- Profit before tax rose +136.78% QoQ to Rs 15.13 cr, with other income accounting for 18.97% of pre-tax profit.
- Net profit increased +124.79% QoQ to Rs 10.70 cr despite a 3.83 percentage-point rise in the tax rate to 29.32%.
Revenue growth delivered modest operating leverage
Hitech Gear's consolidated revenue grew +19.90% QoQ, ahead of the +18.98% increase in expenses. That gap lifted operating profit +27.26% and widened operating margin by 0.68 percentage points to 11.76%. The quarter therefore showed modest operating leverage rather than a cost-led margin squeeze.
Other income aided a sharp pre-tax profit increase
Profit before tax rose +136.78% QoQ as operating profit increased +27.26%, interest expense fell -2.58% and other income grew +129.60%. Other income contributed 18.97% of pre-tax profit, so the profit increase was not entirely operational. Depreciation was broadly steady, rising +0.87% sequentially.
Sequential margin direction improved, but the tax rate rose
Operating margin increased from 11.08% in Q1FY27 to 11.76% in Q2FY27, marking an improvement in the available quarter-on-quarter trend. Net profit still rose +124.79% even as the tax rate increased by 3.83 percentage points to 29.32%, which limited the conversion of the pre-tax gain into earnings.
Results were filed after market close
The consolidated results were filed after market close on 4 November 2026. A post-result stock reaction is therefore not part of this assessment.
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 | ₹285 cr | ₹238 cr | +19.90% |
| Other income | ₹3 cr | ₹1 cr | +129.60% |
| Expenses | ₹251 cr | ₹211 cr | +18.98% |
| Operating profit | ₹34 cr | ₹26 cr | +27.26% |
| Operating margin (%) | 11.76% | 11.08% | — |
| Interest | ₹4 cr | ₹4 cr | -2.58% |
| Depreciation | ₹17 cr | ₹17 cr | +0.87% |
| Profit before tax | ₹15 cr | ₹6 cr | +136.78% |
| Tax | ₹4 cr | ₹2 cr | +172.39% |
| Net profit | ₹11 cr | ₹5 cr | +124.79% |
| EPS (₹) | ₹5.69 | ₹2.53 | +124.90% |
What to watch
- Whether operating margin holds above 11.76% after the sequential improvement from 11.08%.
- Whether expense growth remains below revenue growth after +18.98% versus +19.90% in Q2FY27.
- Whether other income's contribution to pre-tax profit remains near or below 18.97%.