Lower revenue, better cost control lift Indian Hume Pipe's margin
Standalone Q2 profit fell -3.48% sequentially as other income dropped and interest costs rose.
Filed 05 Nov 2026, 17:38 IST · after market close · Indian Hume Pipe Company Ltd (INDIANHUME)
Key takeaways
- Revenue fell -5.30% sequentially, but expenses fell -7.60%, lifting operating margin by 2.18 percentage points to 12.01%.
- Net profit declined -3.48% sequentially as other income fell -27.11% and interest expense rose +7.97%.
- Standalone operating margin of 12.01% was 0.51 percentage points above the 11.50% median for 178 reporting Industrials peers.
Price around the results
Cost control offset the revenue decline
In standalone Q2FY27 results, revenue fell -5.30% sequentially, but expenses declined faster at -7.60%. That operating leverage lifted operating profit by +15.80% and expanded operating margin by 2.18 percentage points to 12.01%. The results were filed after market close on 5 November 2026.
Other income diluted the operating improvement
Profit before tax fell -3.49% sequentially despite the higher operating profit because other income declined -27.11% and interest expense increased +7.97%. Other income accounted for 40.62% of pre-tax profit, making reported profit materially dependent on non-operating income. The tax rate was nearly unchanged, falling only 0.01 percentage points.
Margin moved above the Industrials peer median
Indian Hume Pipe's 12.01% operating margin was 0.51 percentage points above the 11.50% median among 178 Industrials companies that had reported the same quarter. It also improved from 9.83% in Q1FY27, although the sequential revenue decline shows that the margin gain came from lower costs rather than sales growth.
No market reaction was available at filing
The results were filed after market close, so there was no post-results stock reaction to assess. The next market session will provide the first observable response to the margin improvement and the decline in reported profit.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹287 cr | ₹303 cr | -5.30% |
| Other income | ₹12 cr | ₹17 cr | -27.11% |
| Expenses | ₹252 cr | ₹273 cr | -7.60% |
| Operating profit | ₹34 cr | ₹30 cr | +15.80% |
| Operating margin (%) | 12.01% | 9.83% | — |
| Interest | ₹11 cr | ₹11 cr | +7.97% |
| Depreciation | ₹5 cr | ₹5 cr | +7.54% |
| Profit before tax | ₹30 cr | ₹32 cr | -3.49% |
| Tax | ₹8 cr | ₹8 cr | -3.51% |
| Net profit | ₹23 cr | ₹24 cr | -3.48% |
| EPS (₹) | ₹4.32 | ₹4.47 | -3.36% |
Operating margin of 12.01% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 12.01% after the sequential improvement.
- Whether other income remains a large contributor to pre-tax profit after its 40.62% share in Q2FY27.
- Whether interest expense reverses the +7.97% sequential increase.