Karma Energy’s standalone margin jumps 39.93 percentage points QoQ
Revenue rose 74.69% while expenses fell 12.99%, but other income still supplied 19.77% of pre-tax profit.
Filed 12 Nov 2026, 16:48 IST · after market close · Karma Energy Ltd (KARMAENG)
Key takeaways
- Standalone operating margin widened 39.93 percentage points sequentially as revenue grew 74.69% while expenses fell 12.99%.
- Other income made up 19.77% of profit before tax, so reported profit was not entirely operating-led.
- The 60.51% operating margin was 32.52 percentage points above the 27.99% median for 31 Utilities peers.
Price around the results
Revenue growth and lower costs drove the margin surge
Karma Energy’s standalone revenue rose 74.69% sequentially, while expenses fell 12.99%. That combination lifted operating profit growth to 412.12% and widened operating margin by 39.93 percentage points. The sharp improvement followed the 20.58% margin reported in Q1FY27.
Other income supported profit, while the tax rate rose
Other income contributed 19.77% of profit before tax, so the quarter’s earnings were not generated entirely by operations. The tax rate increased by 12.44 percentage points sequentially, which did not provide a tax-led boost to net profit. Interest was unchanged sequentially.
Margin remained well above the Utilities peer median
The 60.51% operating margin was 32.52 percentage points above the 27.99% median among 31 Utilities peers that had reported the quarter. With no year-on-year comparison available, the sequential improvement is the clearest measure of current momentum.
Results were filed after market close
The standalone results were filed after market close, so there is no reported market reaction to assess for this release. The next market response will need to be viewed against the sharp sequential improvement in operating margin.
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 | ₹6 cr | ₹3 cr | +74.69% |
| Other income | ₹1 cr | ₹0 cr | +79.49% |
| Expenses | ₹2 cr | ₹3 cr | -12.99% |
| Operating profit | ₹3 cr | ₹1 cr | +412.12% |
| Operating margin (%) | 60.51% | 20.58% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹1 cr | ₹1 cr | +1.96% |
| Profit before tax | ₹4 cr | ₹1 cr | +608.00% |
| Tax | ₹1 cr | ₹0 cr | +1383.33% |
| Net profit | ₹3 cr | ₹0 cr | +502.27% |
| EPS (₹) | ₹2.29 | ₹0.38 | +502.63% |
Operating margin of 60.51% compares with a Utilities sector median of 27.99% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 60.51% after the 39.93-point sequential jump.
- Whether expenses remain at or below Rs 2.21 cr in the next quarter.
- The share of profit before tax accounted for by other income versus 19.77%.