IKIO's Q2 operating margin expands as revenue growth edges costs
Revenue rose +23.29% QoQ, while a lower tax rate helped net profit grow +16.38% despite higher interest.
Filed 05 Nov 2026, 19:07 IST · after market close · IKIO Technologies Ltd (IKIO)
Key takeaways
- Consolidated revenue rose +23.29% QoQ to Rs 208.72 cr, as costs grew +22.71% and operating margin widened 0.41 percentage points.
- Net profit increased +16.38% QoQ to Rs 12.86 cr, helped by a 2.11 percentage-point fall in the tax rate to 32.53%.
- IKIO's 13.38% operating margin was 1.82 percentage points above the 11.56% median for 262 Consumer Discretionary peers.
Price around the results
Q2 revenue growth outpaced costs
IKIO reported consolidated revenue growth of +23.29% QoQ, ahead of the +22.71% increase in expenses. That operating leverage lifted operating profit by +27.19% and widened operating margin by 0.41 percentage points to 13.38%. Its margin was 1.82 percentage points above the 11.56% median among 262 Consumer Discretionary peers that had reported the same quarter.
Lower tax rate supported profit conversion
Profit before tax grew +12.78% QoQ, while net profit rose faster at +16.38% as the tax rate fell 2.11 percentage points to 32.53%; the lower rate therefore flattered net profit growth. Interest increased +10.75% and depreciation rose +10.90%, adding pressure below operating profit. Other income fell -66.51% and represented 7.45% of pre-tax profit, so it was not the main source of the earnings increase.
Sequential momentum improved, but the trend is still short
Compared with Q1FY27, revenue, operating profit and net profit all increased, while operating margin moved up from 12.97% to 13.38%. The available quarter-to-quarter comparison shows improvement in Q2, but does not establish a longer multi-quarter margin direction.
Results were filed after market close
IKIO filed these consolidated results after market close on 05 Nov 2026. The quarter's reported operating margin was above the peer median, while the key profit-quality offset was the lower tax rate rather than higher other income.
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 | ₹209 cr | ₹169 cr | +23.29% |
| Other income | ₹1 cr | ₹4 cr | -66.51% |
| Expenses | ₹181 cr | ₹147 cr | +22.71% |
| Operating profit | ₹28 cr | ₹22 cr | +27.19% |
| Operating margin (%) | 13.38% | 12.97% | — |
| Interest | ₹2 cr | ₹2 cr | +10.75% |
| Depreciation | ₹8 cr | ₹7 cr | +10.90% |
| Profit before tax | ₹19 cr | ₹17 cr | +12.78% |
| Tax | ₹6 cr | ₹6 cr | +5.98% |
| Net profit | ₹13 cr | ₹11 cr | +16.38% |
| EPS (₹) | ₹1.54 | ₹1.40 | +10.00% |
Operating margin of 13.38% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +12.13% | +10.12% |
Volume on the results session was 164.10× its 20-day average.
What to watch
- Whether operating margin holds above 13.38% in the next quarter.
- Whether revenue growth remains above +23.29% QoQ without expenses exceeding the +22.71% pace.
- Whether the tax rate stays below 32.53% while interest growth is contained after +10.75% QoQ.