Expenses outpace revenue, driving a 16.25-point margin slide
Revenue grew +6.30% QoQ, but expenses rose +20.13%, pushing the consolidated company into a Rs 7.27 cr net loss.
Filed 03 Nov 2026, 16:23 IST · after market close · IL&FSENGG (IL&FSENGG)
Key takeaways
- Consolidated operating margin fell 16.25 percentage points sequentially to -41.09% as expenses grew +20.13% against revenue growth of +6.30%.
- The company reported a consolidated net loss of Rs 7.27 cr and EPS of Rs -0.56 despite other income of Rs 10.92 cr.
- Interest fell -26.42% and depreciation declined -10.97% sequentially, but these savings did not offset the rise in expenses.
Revenue growth did not prevent a Q2FY27 loss
Consolidated revenue increased +6.30% sequentially, but expenses rose +20.13%, causing the operating loss to widen from Rs 9.34 cr to Rs 16.42 cr. Profit before tax moved from Rs 0.01 cr in Q1FY27 to a loss of Rs 7.27 cr in Q2FY27. With the tax rate unchanged at 0.00%, the pre-tax loss flowed through to net profit.
Costs, rather than financing, drove the margin collapse
Expenses grew faster than revenue, cutting operating margin by 16.25 percentage points to -41.09%. Other income also declined -4.55% sequentially; its -150.21% share of pre-tax profit reflects the distortion from a negative pre-tax result and did not offset the operating loss. Lower interest expense and depreciation provided limited relief.
Results were filed after market close
The company filed these consolidated results after market close on 3 Nov 2026. The stock's response is therefore not assessed in this update.
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 | ₹40 cr | ₹38 cr | +6.30% |
| Other income | ₹11 cr | ₹11 cr | -4.55% |
| Expenses | ₹56 cr | ₹47 cr | +20.13% |
| Operating profit | ₹-16 cr | ₹-9 cr | -75.80% |
| Operating margin (%) | -41.09% | -24.84% | — |
| Interest | ₹0 cr | ₹1 cr | -26.42% |
| Depreciation | ₹1 cr | ₹2 cr | -10.97% |
| Profit before tax | ₹-7 cr | ₹0 cr | — |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-7 cr | ₹0 cr | — |
| EPS (₹) | ₹-0.56 | ₹0.00 | — |
What to watch
- Whether expense growth moderates from +20.13% QoQ relative to revenue growth of +6.30%.
- Whether operating margin improves from -41.09%.
- Whether the company continues to report a 0.00% tax rate alongside operating losses.