Higher operating profit, but tax surge cuts net profit
A 0.58 percentage-point margin gain was offset at the net-profit level by a sharp rise in the tax rate.
Filed 05 Nov 2026, 13:28 IST · Igarashi Motors India Ltd (IGARASHI)
Key takeaways
- Standalone revenue rose +1.82% QoQ while expenses grew +1.17%, lifting operating margin by 0.58 percentage points to 10.35%.
- Net profit fell -5.61% QoQ to Rs 6.39 cr as the tax rate rose 16.34 percentage points to 21.79%, despite pre-tax profit growth of +14.11%.
- Igarashi Motors’ 10.35% operating margin was 1.21 percentage points below the 11.56% median for 262 reported Consumer Discretionary peers.
Price around the results
Revenue growth outpaced costs in Q2FY27
Standalone revenue increased +1.82% QoQ, while expenses rose +1.17%, allowing operating profit to grow +7.83%. That cost spread lifted operating margin by 0.58 percentage points from Q1FY27.
Tax absorbed the pre-tax profit improvement
Pre-tax profit rose +14.11% QoQ, but the tax charge increased +356.41%, taking the tax rate to 21.79% from 5.45%. Net profit therefore declined -5.61% to Rs 6.39 cr, while other income contributed 4.04% of pre-tax profit and did not drive the result.
Margin remains below the sector median
Igarashi Motors’ 10.35% operating margin was below the 11.56% median among the 262 Consumer Discretionary peers that had reported. The available quarterly trend shows an improvement from 9.77% in Q1FY27, but does not establish a longer sequence.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹255 cr | ₹251 cr | +1.82% |
| Other income | ₹0 cr | ₹1 cr | -65.98% |
| Expenses | ₹229 cr | ₹226 cr | +1.17% |
| Operating profit | ₹26 cr | ₹25 cr | +7.83% |
| Operating margin (%) | 10.35% | 9.77% | — |
| Interest | ₹3 cr | ₹3 cr | +1.52% |
| Depreciation | ₹16 cr | ₹16 cr | +1.46% |
| Profit before tax | ₹8 cr | ₹7 cr | +14.11% |
| Tax | ₹2 cr | ₹0 cr | +356.41% |
| Net profit | ₹6 cr | ₹7 cr | -5.61% |
| EPS (₹) | ₹2.03 | ₹2.15 | -5.58% |
Operating margin of 10.35% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.35% after the 0.58 percentage-point QoQ improvement.
- The next-quarter tax rate against 21.79%, following the 16.34 percentage-point QoQ increase.
- Whether the 1.21 percentage-point gap to the 11.56% sector median narrows.