IFCI margin reaches 71.19% as revenue more than doubles sequentially
The consolidated operating margin improved for a second straight quarter, but higher tax limited year-on-year net-profit growth to +1.85%.
Filed 12 Nov 2026, 16:45 IST · after market close · IFCI Ltd (IFCI)
Key takeaways
- Consolidated revenue rose +124.13% sequentially to Rs 733.04 cr, while expenses grew 52.50%, lifting operating margin by 13.53 percentage points.
- Year-on-year revenue was nearly flat at +0.10%, but expenses fell -13.03%, raising operating margin by 4.35 percentage points to 71.19%.
- Net profit increased only +1.85% year-on-year to Rs 323.26 cr as the tax rate rose 5.18 percentage points, despite lower interest costs.
Price around the results
Sequential revenue rebound drives operating leverage
Consolidated revenue more than doubled sequentially, rising +124.13%, while expenses increased at a slower +52.50% pace. That cost growth gap lifted operating margin by 13.53 percentage points to 71.19%. Against the Financial Services sector median of 51.61% across 118 reported peers, IFCI’s margin was higher by 19.58 percentage points.
Year-on-year margin gains did not fully reach net profit
Year-on-year revenue was broadly unchanged at +0.10%, but expenses declined -13.03%, expanding operating margin by 4.35 percentage points. Interest costs fell -9.86%, supporting the +8.61% rise in profit before tax, while other income accounted for only 2.05% of pre-tax profit and was not a material earnings driver. Net profit rose just +1.85% because the tax rate increased 5.18 percentage points to 21.98%.
Operating margin has recovered sharply across the trend
Operating margin rose from 28.56% in Q3FY26 to 33.20% in Q4FY26, 57.66% in Q1FY27 and 71.19% in Q2FY27. The sequential improvement was also helped by a 15.19 percentage-point reduction in the tax rate and a 7.03% decline in interest costs, although those factors affect profit after operating performance rather than the operating margin itself.
After-close filing leaves the market response pending
The consolidated results were filed after market close, so there is no post-results share-price reaction to assess yet. Across eight recent result reactions, the stock rose three times and fell five times, with a median absolute move of 2.35%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹733 cr | ₹327 cr | +124.13% | +0.10% |
| Other income | ₹9 cr | ₹31 cr | -72.82% | -57.30% |
| Expenses | ₹211 cr | ₹138 cr | +52.50% | -13.03% |
| Operating profit | ₹522 cr | ₹189 cr | +176.72% | +6.62% |
| Operating margin (%) | 71.19% | 57.66% | — | — |
| Interest | ₹96 cr | ₹104 cr | -7.03% | -9.86% |
| Depreciation | ₹20 cr | ₹20 cr | -3.12% | -6.36% |
| Profit before tax | ₹414 cr | ₹96 cr | +331.91% | +8.61% |
| Tax | ₹91 cr | ₹36 cr | +155.38% | +42.14% |
| Net profit | ₹323 cr | ₹60 cr | +436.35% | +1.85% |
| EPS (₹) | ₹0.55 | ₹0.12 | +358.33% | +3.77% |
Operating margin of 71.19% compares with a Financial Services sector median of 51.61% across 118 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 71.19%.
- Whether consolidated revenue remains above Rs 733.04 cr.
- Whether the tax rate stays near or below 21.98%.