HMT’s operating margin plunges to -334.97% as revenue drops
Revenue fell 43.55% QoQ while expenses rose 35.61%; other income of Rs 15.22 cr did not prevent a Rs 57.51 cr net loss.
Filed 06 Nov 2026, 18:58 IST · after market close · HMT (HMT)
Key takeaways
- HMT's consolidated operating margin fell 253.91 percentage points QoQ to -334.97% as revenue fell -43.55% while expenses rose +35.61%.
- Consolidated net loss widened to Rs 57.51 cr from Rs 29.21 cr QoQ, with the tax rate unchanged at 0.00%.
- Other income rose +13.84% QoQ to Rs 15.22 cr but did not offset the operating loss and interest burden.
Revenue slump drives a 253.91-point margin collapse
HMT's consolidated revenue fell -43.55% QoQ to Rs 16.33 cr, while expenses rose +35.61% to Rs 71.03 cr. With costs moving up as revenue contracted, operating profit worsened to a loss of Rs 54.70 cr and operating margin fell 253.91 percentage points.
Other income could not cushion the operating loss
Interest expense fell -6.84% QoQ and depreciation rose +7.69%, but the lower interest cost was not enough to offset the operating deterioration. Other income increased +13.84% to Rs 15.22 cr, yet pre-tax loss widened to Rs 57.51 cr. Its reported share of pre-tax profit was -26.46%, reflecting that it did not provide a profit cushion.
Operating margin deteriorates for a second straight quarter
Operating margin declined from -42.33% in Q4FY26 to -81.06% in Q1FY27 and -334.97% in Q2FY27. Net loss also deepened from Rs 37.45 cr in Q4FY26 to Rs 57.51 cr in Q2FY27, while the current quarter's 0.00% tax rate provided no tax offset.
Results were filed after market close
The consolidated results were filed after market close, so there is no market reaction to assess yet. The reported quarter therefore needs to be read primarily through the sharp QoQ revenue contraction and expense increase.
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 | ₹16 cr | ₹29 cr | -43.55% |
| Other income | ₹15 cr | ₹13 cr | +13.84% |
| Expenses | ₹71 cr | ₹52 cr | +35.61% |
| Operating profit | ₹-55 cr | ₹-23 cr | -133.26% |
| Operating margin (%) | -334.97% | -81.06% | — |
| Interest | ₹16 cr | ₹18 cr | -6.84% |
| Depreciation | ₹2 cr | ₹1 cr | +7.69% |
| Profit before tax | ₹-58 cr | ₹-29 cr | -96.88% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-58 cr | ₹-29 cr | -96.88% |
| EPS (₹) | ₹-1.62 | ₹-0.82 | -97.56% |
What to watch
- Whether revenue recovers from Rs 16.33 cr in the next quarter.
- Whether operating margin improves from -334.97%.
- Whether interest expense remains below Rs 16.49 cr.