Kabra Extrusion returns to profit as operating margin improves sequentially
Revenue grew faster than expenses, but other income supplied 49.66% of pre-tax profit and margin remained below the peer median.
Filed 16 Oct 2026, 18:38 IST · after market close · Kabra Extrusion Technik Ltd (KABRAEXTRU)
Key takeaways
- Consolidated operating margin expanded 2.89 percentage points QoQ to 7.87% as revenue growth of +77.49% outpaced expense growth of +72.10%.
- Net profit turned positive at Rs 3.97 cr from a Q1 loss of Rs 1.74 cr, helped by the tax rate falling 21.48 percentage points to 45.98%.
- Other income contributed 49.66% of pre-tax profit, while operating margin remained 3.86 percentage points below the Industrials peer median.
Price around the results
Q2 revenue rebound restores profitability
Consolidated revenue grew +77.49% QoQ, ahead of the +72.10% rise in expenses, lifting operating profit by +180.32%. The improvement moved profit before tax from a loss of Rs 5.34 cr in Q1FY27 to a profit of Rs 7.35 cr. Net profit consequently turned positive at Rs 3.97 cr, compared with a loss of Rs 1.74 cr in the previous quarter.
Margin improved, but profit quality needs attention
Operating margin increased 2.89 percentage points to 7.87% because revenue grew faster than expenses. Interest expense rose +44.24% QoQ, while depreciation was broadly unchanged, increasing the drag below operating profit. Other income accounted for 49.66% of pre-tax profit, and the 21.48-percentage-point fall in the tax rate also flattered the sequential net-profit comparison.
Margin remains below the Industrials peer median
The operating margin recovered from 4.98% in Q1FY27 to 7.87% in Q2FY27, marking a sequential improvement in the available quarterly trend. Among 14 Industrials peers that had reported, Kabra Extrusion's margin was 3.86 percentage points below the 11.73% median.
Results filed after market close
Kabra Extrusion filed these consolidated results after market close on 16 October 2026. A post-results stock reaction is therefore not yet part of this readout.
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 | ₹221 cr | ₹124 cr | +77.49% |
| Other income | ₹4 cr | ₹0 cr | +729.55% |
| Expenses | ₹204 cr | ₹118 cr | +72.10% |
| Operating profit | ₹17 cr | ₹6 cr | +180.32% |
| Operating margin (%) | 7.87% | 4.98% | — |
| Interest | ₹6 cr | ₹4 cr | +44.24% |
| Depreciation | ₹8 cr | ₹8 cr | +0.25% |
| Profit before tax | ₹7 cr | ₹-5 cr | — |
| Tax | ₹3 cr | ₹-4 cr | — |
| Net profit | ₹4 cr | ₹-2 cr | — |
| EPS (₹) | ₹1.13 | ₹-0.50 | — |
Operating margin of 7.87% compares with a Industrials sector median of 11.73% across 14 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin stays above 7.87% after the 2.89-percentage-point QoQ recovery.
- Whether other income remains a material contributor relative to its 49.66% share of pre-tax profit.
- Whether interest expense continues to rise after its +44.24% QoQ increase.