HLE Glascoat's operating margin widens 3.62 points QoQ
Revenue grew faster than expenses, while the lower tax rate amplified net profit; operating margin remained below the Industrials peer median.
Filed 02 Nov 2026, 16:10 IST · after market close · HLE Glascoat Ltd (HLEGLAS)
Key takeaways
- Consolidated operating profit rose +75.16% QoQ as revenue grew +15.26% and expenses grew +10.78%.
- Net profit rose +681.46% QoQ, helped by a 30.35 percentage-point fall in the tax rate to 22.63%.
- Operating margin expanded 3.62 percentage points QoQ to 10.58%, but remained 0.95 percentage points below the 11.53% median for 88 Industrials peers.
Price around the results
Revenue growth outpaced expenses in Q2FY27
HLE Glascoat reported consolidated revenue of Rs 346.65 cr, up +15.26% QoQ, while expenses increased +10.78%. That gap lifted operating profit by +75.16% QoQ to Rs 36.66 cr. The results were filed after market close on 02 Nov 2026 at 16:10 IST, before a market reaction could be observed.
Margin recovery came with lower tax support
Operating margin widened 3.62 percentage points QoQ to 10.58% because revenue growth exceeded expense growth. Interest increased only +0.36% QoQ and depreciation declined -0.10%, limiting pressure below the operating line. Net profit was also helped by the tax rate falling 30.35 percentage points to 22.63%; other income accounted for 11.26% of pre-tax profit.
Margin improved but stayed below peer median
The 10.58% operating margin was 0.95 percentage points below the 11.53% median among 88 Industrials companies that had reported the same quarter. The available quarter-on-quarter trend shows a recovery from 6.96% in Q1FY27, rather than a multi-quarter direction.
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 | ₹347 cr | ₹301 cr | +15.26% |
| Other income | ₹2 cr | ₹2 cr | +37.06% |
| Expenses | ₹310 cr | ₹280 cr | +10.78% |
| Operating profit | ₹37 cr | ₹21 cr | +75.16% |
| Operating margin (%) | 10.58% | 6.96% | — |
| Interest | ₹8 cr | ₹8 cr | +0.36% |
| Depreciation | ₹10 cr | ₹10 cr | -0.10% |
| Profit before tax | ₹21 cr | ₹4 cr | +373.68% |
| Tax | ₹5 cr | ₹2 cr | +102.60% |
| Net profit | ₹16 cr | ₹2 cr | +681.46% |
| EPS (₹) | ₹2.06 | ₹0.40 | +415.00% |
Operating margin of 10.58% compares with a Industrials sector median of 11.53% across 88 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.58% next quarter.
- Whether revenue growth continues to outpace expense growth after +15.26% versus +10.78% QoQ.
- Whether the tax rate remains near 22.63% after its 30.35 percentage-point QoQ decline.