Costs outpaced revenue as operating margin slipped to 7.55%
Other income made up 50.93% of pre-tax profit, while IMPAL's margin remained 5.19 percentage points below the sector median.
Filed 29 Oct 2026, 11:01 IST · India Motor Parts & Accessories Ltd (IMPAL)
Key takeaways
- Standalone operating margin narrowed 0.21 percentage points sequentially to 7.55% as expenses grew faster than revenue.
- Other income contributed 50.93% of pre-tax profit, while the tax rate fell 4.16 percentage points to 16.76%.
- The 7.55% operating margin was 5.19 percentage points below the 12.74% median for 89 reported Consumer Discretionary peers.
Price around the results
Sequential growth came from a very low Q1 base
Standalone revenue grew 9374.36% sequentially from Q1FY27, but expenses grew slightly faster at 9389.35%. That left operating profit growth at 9194.44%, indicating that the sharp increase in activity did not translate into operating leverage.
Lower tax helped profit, while other income remained material
The faster rise in expenses reduced operating margin by 0.21 percentage points to 7.55%. Other income accounted for 50.93% of pre-tax profit, so reported earnings were materially supported outside operations. The tax rate also fell 4.16 percentage points to 16.76%, providing an additional lift to net profit.
Margin trailed most reported sector peers
IMPAL's 7.55% operating margin was below the 12.74% median among 89 Consumer Discretionary companies that had reported the quarter. It ranked 24th from the bottom on this measure, placing its operating profitability toward the weaker end of the reported peer set.
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 | ₹222 cr | ₹2 cr | +9374.36% |
| Other income | ₹17 cr | ₹0 cr | +16830.00% |
| Expenses | ₹205 cr | ₹2 cr | +9389.35% |
| Operating profit | ₹17 cr | ₹0 cr | +9194.44% |
| Operating margin (%) | 7.55% | 7.76% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | — |
| Profit before tax | ₹33 cr | ₹0 cr | +12211.11% |
| Tax | ₹6 cr | ₹0 cr | +9183.33% |
| Net profit | ₹28 cr | ₹0 cr | +12477.27% |
| EPS (₹) | ₹22.18 | ₹17.38 | +27.62% |
Operating margin of 7.55% compares with a Consumer Discretionary sector median of 12.74% across 89 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 7.55% after the 0.21 percentage-point sequential decline.
- Whether expense growth falls below the 9389.35% sequential increase recorded this quarter.
- Whether other income's 50.93% contribution to pre-tax profit declines in the next quarter.