Costs outpace revenue as Indo Tech margin slips to 12.86%
Standalone net profit rose +1.67% QoQ, helped by other income equal to 19.4% of pre-tax profit, while the stock's reaction was -1.53%.
Filed 12 Nov 2026, 13:29 IST · Indo Tech Transformers Ltd (INDOTECH)
Key takeaways
- Expenses grew +5.98% QoQ against revenue growth of +4.65%, cutting operating margin by 1.09 percentage points to 12.86%.
- Net profit rose +1.67% QoQ even as operating profit fell -3.55%, with other income contributing 19.4% of pre-tax profit.
- The stock's reaction was -1.53%, while the standalone operating margin remained 1.35 percentage points above the Industrials median.
Price around the results
Revenue growth did not translate into operating profit
Indo Tech's standalone revenue increased +4.65% QoQ to Rs 238.48 cr, but operating profit fell -3.55% to Rs 30.66 cr. Expenses rose +5.98% to Rs 207.82 cr, outpacing revenue and reducing operating margin to 12.86%. Lower interest expense, down -8.00%, provided only a limited offset.
Margin pressure continued across the available trend
Operating margin declined by 1.09 percentage points QoQ as costs grew faster than revenue. It has moved from 14.64% in Q1FY26 to 13.95% in Q1FY27 and 12.86% in Q2FY27. The margin still stood 1.35 percentage points above the 11.51% median for 230 reported Industrials peers.
Other income supported profit quality
Pre-tax profit rose +2.50% QoQ despite the fall in operating profit, helped by other income growth of +42.29% to Rs 6.83 cr. Other income accounted for 19.4% of pre-tax profit, making it a material contributor to reported earnings. The tax rate also increased by 0.61 percentage points to 25.79%, limiting the conversion of pre-tax growth into net profit.
The stock reversed an opening gain on results day
The stock's reaction was -1.53%, despite an opening gap of +1.86%. Its relative return was -1.71%, indicating weaker performance than the comparison benchmark on the day.
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 | ₹238 cr | ₹228 cr | +4.65% |
| Other income | ₹7 cr | ₹5 cr | +42.29% |
| Expenses | ₹208 cr | ₹196 cr | +5.98% |
| Operating profit | ₹31 cr | ₹32 cr | -3.55% |
| Operating margin (%) | 12.86% | 13.95% | — |
| Interest | ₹0 cr | ₹1 cr | -8.00% |
| Depreciation | ₹2 cr | ₹2 cr | +4.60% |
| Profit before tax | ₹35 cr | ₹34 cr | +2.50% |
| Tax | ₹9 cr | ₹9 cr | +4.97% |
| Net profit | ₹26 cr | ₹26 cr | +1.67% |
| EPS (₹) | ₹24.60 | ₹24.20 | +1.65% |
Operating margin of 12.86% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.53% | -1.71% |
Volume on the results session was 1.00× its 20-day average.
What to watch
- Whether standalone operating margin holds above 12.86%.
- Whether expenses grow more slowly than the +5.98% QoQ pace.
- Whether other income's 19.4% share of pre-tax profit declines.