Indiabulls lifts margin to 51.82% as expenses fall faster than revenue
Consolidated Q2 revenue declined 7.68% sequentially, but a 22.21% fall in expenses lifted operating profit and reduced the tax burden supported net profit.
Filed 05 Nov 2026, 12:30 IST · Indiabulls Limited (IBULLSLTD)
Key takeaways
- Consolidated operating margin widened 9.00 percentage points QoQ to 51.82% because expenses fell 22.21% while revenue declined 7.68%.
- Net profit rose 100.66% YoY as revenue grew 40.45% and the tax rate fell 22.23 percentage points to 4.89%.
- The initial 2.78% stock gain was below the 3.56% median absolute move after the company’s last three results.
Price around the results
Costs drove the sharp sequential margin expansion
Consolidated revenue fell 7.68% QoQ, but expenses declined 22.21%, allowing operating profit to rise 11.72% and operating margin to widen 9.00 percentage points to 51.82%. Interest was broadly unchanged at +0.21% QoQ, while depreciation fell 5.12%, so the margin gain came mainly from lower operating expenses.
Year-on-year growth had operating support, with tax adding leverage
Revenue grew 40.45% YoY while expenses rose 23.87%, lifting operating profit 60.40% and expanding margin by 6.44 percentage points. Interest fell 34.20% and depreciation fell 16.28%, further supporting profit before tax. The tax rate dropped 22.23 percentage points to 4.89%, which helped net profit rise 100.66%; other income was only 2.86% of pre-tax profit, so it was not the main earnings driver.
Margin has improved for three straight quarters
Operating margin rose from 41.63% in Q4FY26 to 42.82% in Q1FY27 and 51.82% in Q2FY27, marking a third consecutive quarterly increase. The margin was 30.32 percentage points above the 21.50% median for the 53 Services peers that had reported the quarter.
Initial stock reaction was within its recent range
The stock rose 2.78% on the results date, with trading volume at 2.32 times the reference level. That move was below the 3.56% median absolute move seen after the company’s last three results, when the stock rose twice and fell once.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹332 cr | ₹359 cr | -7.68% | +40.45% |
| Other income | ₹5 cr | ₹25 cr | -81.78% | -77.61% |
| Expenses | ₹160 cr | ₹206 cr | -22.21% | +23.87% |
| Operating profit | ₹172 cr | ₹154 cr | +11.72% | +60.40% |
| Operating margin (%) | 51.82% | 42.82% | — | — |
| Interest | ₹10 cr | ₹10 cr | +0.21% | -34.20% |
| Depreciation | ₹8 cr | ₹8 cr | -5.12% | -16.28% |
| Profit before tax | ₹159 cr | ₹161 cr | -1.22% | +53.77% |
| Tax | ₹8 cr | ₹20 cr | -60.84% | -72.27% |
| Net profit | ₹151 cr | ₹141 cr | +7.16% | +100.66% |
| EPS (₹) | ₹0.66 | ₹0.64 | +3.13% | — |
Operating margin of 51.82% compares with a Services sector median of 21.50% across 53 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.78% | +0.38% |
Volume on the results session was 2.32× its 20-day average.
What to watch
- Whether operating margin holds above 51.82% after its 9.00-point sequential expansion.
- Whether expenses continue to grow slower than revenue, as they did at 23.87% versus 40.45% YoY.
- Whether the tax rate remains below Q1FY27’s 12.33% after falling to 4.89%.