Kernex margin beats Services peers as stock rises 3.67%
The consolidated quarter delivered a 32.33% operating margin, while other income was only Rs 0.49 cr against Rs 148.14 cr of pre-tax profit.
Filed 13 Aug 2026, 12:01 IST · Kernex Microsystems (India) Ltd (KERNEX)
Key takeaways
- Kernex reported consolidated operating margin of 32.33%, 5.73 percentage points above the Services-sector median across 25 reporting peers.
- Net profit was Rs 109.85 cr after a 25.85% tax rate, while other income of Rs 0.49 cr made little contribution to pre-tax profit of Rs 148.14 cr.
- The stock rose 3.67% on results day, with traded volume at 11.22 times its recent average.
Price around the results
A high-margin consolidated quarter
Kernex generated consolidated revenue of Rs 503.58 cr and operating profit of Rs 162.82 cr in Q1FY27. The 32.33% operating margin puts the quarter's operating performance ahead of the Services-sector median of 26.6% across 25 companies that have reported. Profit before tax was Rs 148.14 cr and net profit was Rs 109.85 cr.
Profit quality was not dependent on other income
Other income was Rs 0.49 cr, so the reported pre-tax profit was primarily supported by operating performance rather than non-operating income. Interest expense was Rs 13.23 cr and depreciation was Rs 1.94 cr. Tax was charged at 25.85%, which is the key bridge from pre-tax profit to net profit.
The market response was positive but has no historical benchmark here
Kernex rose 3.67% on the results date, with a 0.44% opening gap and a 3.83% relative move. Volume was 11.22 times its recent average. The available reaction does not provide a past-results history against which to judge whether this move was ordinary or unusual.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹504 cr |
| Other income | ₹0 cr |
| Expenses | ₹341 cr |
| Operating profit | ₹163 cr |
| Operating margin (%) | 32.33% |
| Interest | ₹13 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹148 cr |
| Tax | ₹38 cr |
| Net profit | ₹110 cr |
| EPS (₹) | ₹65.37 |
Operating margin of 32.33% compares with a Services sector median of 26.60% across 25 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.67% | +3.83% |
Volume on the results session was 11.22× its 20-day average.
What to watch
- Whether operating margin remains above 32.33% in the next reported quarter.
- Whether interest expense stays near Rs 13.23 cr as profit scales.
- Whether other income remains immaterial relative to pre-tax profit of Rs 148.14 cr.