Ingersoll-Rand India margin slips as expenses outpace revenue growth
Standalone revenue rose 4.75% QoQ, but faster cost growth and a 67.65% rise in interest reduced net profit by 6.53%.
Filed 06 Nov 2026, 19:04 IST · after market close · Ingersoll-Rand (India) Ltd (INGERRAND)
Key takeaways
- Standalone revenue grew 23.47% YoY, but expenses rose 27.26%, reducing operating margin by 2.34 percentage points to 21.22%.
- Sequentially, expenses increased 8.27% against 4.75% revenue growth, driving a 2.56-percentage-point margin decline and a 6.53% fall in net profit.
- Other income contributed 10.23% of pre-tax profit, while the 25.19% tax rate was only 0.17 percentage points lower YoY.
Price around the results
Revenue growth did not translate into operating leverage
Ingersoll-Rand (India) reported standalone revenue growth of 23.47% YoY, but operating profit increased only 11.18% because expenses grew faster than sales. The sequential picture also weakened: revenue rose 4.75%, while expenses increased 8.27%. Net profit fell 6.53% QoQ as operating profit declined 6.53%.
Higher costs and interest weighed on profit conversion
The faster rise in expenses cut operating margin by 2.34 percentage points YoY and 2.56 percentage points QoQ. Interest expense rose 39.02% YoY and 67.65% QoQ, adding to the pressure, although the tax rate fell 0.17 percentage points YoY and 0.63 percentage points sequentially. Other income accounted for 10.23% of pre-tax profit, so reported profit was partly supported outside operations.
Margin remains above the Industrials peer median
The 21.22% operating margin was 9.71 percentage points above the 11.51% median among 198 Industrials companies that had reported the quarter. However, margin declined from 23.78% in Q1FY27 after rising in that quarter, and remains below the 25.08% recorded in Q3FY26. The recent pattern is therefore uneven rather than a sustained margin expansion.
Results were filed after market close
The standalone results were filed after market close, so there is no current market reaction to assess. Across the past eight results, the stock rose four times and fell four times, with a median absolute move of 2.30%.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹398 cr | ₹379 cr | +4.75% | +23.47% |
| Other income | ₹9 cr | ₹10 cr | -8.34% | +0.33% |
| Expenses | ₹313 cr | ₹289 cr | +8.27% | +27.26% |
| Operating profit | ₹84 cr | ₹90 cr | -6.53% | +11.18% |
| Operating margin (%) | 21.22% | 23.78% | — | — |
| Interest | ₹1 cr | ₹0 cr | +67.65% | +39.02% |
| Depreciation | ₹5 cr | ₹5 cr | +0.21% | +32.49% |
| Profit before tax | ₹88 cr | ₹95 cr | -7.32% | +8.89% |
| Tax | ₹22 cr | ₹25 cr | -9.58% | +8.20% |
| Net profit | ₹66 cr | ₹70 cr | -6.53% | +9.13% |
| EPS (₹) | ₹20.86 | ₹22.32 | -6.54% | +9.10% |
Operating margin of 21.22% compares with a Industrials sector median of 11.51% across 198 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 21.22% after the 23.78% Q1FY27 reading.
- Whether expenses continue to grow faster than revenue after rising 8.27% QoQ versus 4.75% revenue growth.
- Whether other income's 10.23% share of pre-tax profit changes.