Costs outpace revenue as Intrasoft’s Q2 profit drops 17.14%
Consolidated margin slipped 0.29 percentage points QoQ; management said Vendor Direct’s share and product breadth would increase.
Filed 06 Nov 2026, 20:15 IST · after market close · Intrasoft Technologies Ltd (ISFT)
Key takeaways
- Consolidated net profit fell 17.14% QoQ to Rs 3.77 cr even as revenue grew 2.95%.
- Operating margin narrowed 0.29 percentage points as expenses grew 3.26%, faster than revenue at 2.95%.
- At 3.21%, operating margin was 8.27 percentage points below the 11.48% median of 285 reported Consumer Discretionary peers.
Price around the results
Revenue growth did not convert into earnings growth
Intrasoft’s consolidated revenue increased 2.95% QoQ to Rs 143.75 cr, but operating profit declined 5.52% to Rs 4.62 cr and net profit fell 17.14% to Rs 3.77 cr. Higher interest costs, up 12.82%, and depreciation, up 113.33%, added to the pressure below operating profit. The results were filed after market close on 6 Nov 2026 at 20:15 IST.
Faster cost growth squeezed margin
Expenses grew 3.26% QoQ against revenue growth of 2.95%, narrowing operating margin from 3.50% to 3.21%. The tax rate also rose from 2.98% to 6.47%, further reducing the conversion of pre-tax profit into net profit. Other income contributed 4.22% of pre-tax profit, so the quarter’s earnings were not materially reliant on that source.
Margin remains well below the peer median
Among 285 Consumer Discretionary companies that have reported, Intrasoft’s 3.21% operating margin was 8.27 percentage points below the sector median of 11.48%. The company was 46th from the bottom on this measure. Sequentially, margin declined for the move from Q1FY27 to Q2FY27, but the available comparison does not establish a longer multi-quarter pattern.
Management points to a larger Vendor Direct model
Management said the Vendor Direct Model’s share of revenue would continue to increase and that greater reliance on it would improve scalability. The company said it targets expanding product breadth from 150,000 to 500,000 offerings. Management also said it would continue investing in technology, including artificial intelligence, transaction efficiency, automation, scalability and security.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹144 cr | ₹140 cr | +2.95% |
| Other income | ₹0 cr | ₹0 cr | -48.48% |
| Expenses | ₹139 cr | ₹135 cr | +3.26% |
| Operating profit | ₹5 cr | ₹5 cr | -5.52% |
| Operating margin (%) | 3.21% | 3.50% | — |
| Interest | ₹0 cr | ₹0 cr | +12.82% |
| Depreciation | ₹0 cr | ₹0 cr | +113.33% |
| Profit before tax | ₹4 cr | ₹5 cr | -13.89% |
| Tax | ₹0 cr | ₹0 cr | +85.71% |
| Net profit | ₹4 cr | ₹5 cr | -17.14% |
| EPS (₹) | ₹2.31 | ₹2.79 | -17.20% |
Operating margin of 3.21% compares with a Consumer Discretionary sector median of 11.48% across 285 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects Vendor Direct Model revenue as a percentage of total revenue to continuously increase.
- The company expects scalability to improve significantly as reliance on the Vendor Direct model increases.
Expansion
- The company targets increasing its product offering breadth from 150,000 to 500,000.
New initiatives
- The company plans to invest in technology innovation and artificial intelligence.
- The company will continue investing in technology to improve transaction efficiency, scalability, automation and security.
What to watch
- Whether expenses continue to grow faster than revenue after the +3.26% versus +2.95% gap in Q2FY27.
- Whether operating margin recovers from 3.21% after the 0.29 percentage-point QoQ decline.
- Progress against management’s stated expansion of product breadth from 150,000 toward 500,000 offerings.