India Nippon’s revenue rose, but faster costs cut margin and profit
Sequential sales growth was outweighed by expense growth, while the sharp fall in other income reduced profit before tax despite higher operating profit.
Filed 12 Nov 2026, 19:09 IST · after market close · India Nippon Electricals Ltd (INDNIPPON)
Key takeaways
- Standalone revenue rose 14.12% sequentially, but expenses grew faster at 15.38%, narrowing operating margin by 0.99 percentage points.
- Net profit fell 19.31% sequentially as other income dropped to Rs 0.87 cr from Rs 8.10 cr and the tax rate rose to 23.55%.
- Operating margin at 9.54% was 1.69 percentage points below the 11.23% median for 329 Consumer Discretionary peers.
Price around the results
Sales momentum did not convert into profit growth
Standalone revenue increased 14.12% sequentially to Rs 347.48 cr, while operating profit rose only 3.46% to Rs 33.16 cr. Net profit declined 19.31% to Rs 21.81 cr because the operating gain was more than offset below the operating line.
Faster expenses and lower other income drove the squeeze
Expenses grew 15.38%, faster than revenue, narrowing operating margin by 0.99 percentage points to 9.54%. Other income fell 89.26% to Rs 0.87 cr from Rs 8.10 cr, and its contribution was only 3.05% of profit before tax in the quarter. The tax rate also increased by 1.13 percentage points to 23.55%, adding to the sequential decline in net profit.
Margin lagged peers; results came after the close
India Nippon’s 9.54% operating margin was below the 11.23% median among 329 Consumer Discretionary peers that had reported the same quarter; the company ranked 137th from the bottom on this measure. Compared with Q1FY27, the quarter showed higher sales but weaker conversion into operating profit and net profit. The company filed the standalone results after market close.
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 | ₹347 cr | ₹304 cr | +14.12% |
| Other income | ₹1 cr | ₹8 cr | -89.26% |
| Expenses | ₹314 cr | ₹272 cr | +15.38% |
| Operating profit | ₹33 cr | ₹32 cr | +3.46% |
| Operating margin (%) | 9.54% | 10.53% | — |
| Interest | ₹0 cr | ₹0 cr | -12.50% |
| Depreciation | ₹5 cr | ₹5 cr | +3.82% |
| Profit before tax | ₹29 cr | ₹35 cr | -18.11% |
| Tax | ₹7 cr | ₹8 cr | -13.96% |
| Net profit | ₹22 cr | ₹27 cr | -19.31% |
| EPS (₹) | ₹9.64 | ₹11.95 | -19.33% |
Operating margin of 9.54% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.54% after expenses grew 15.38% sequentially.
- Whether other income remains near Rs 0.87 cr rather than returning to the Rs 8.10 cr seen in Q1FY27.
- Whether the tax rate moves back from 23.55% toward the prior quarter’s 22.42%.