Other income lifts Kesoram to profit despite an operating loss
Revenue rose +8.79% sequentially, but expenses grew +10.01%, while other income accounted for 157.57% of pre-tax profit.
Filed 12 Nov 2026, 14:45 IST · KESORAMIND (KESORAMIND)
Key takeaways
- Consolidated operating loss widened sequentially as expenses grew +10.01% versus revenue +8.79%, pushing operating margin down 1.26 percentage points to -13.97%.
- Consolidated net profit turned positive at Rs 32.75 cr from a Rs 20.19 cr loss, but other income equal to 157.57% of pre-tax profit drove the swing.
- Interest expense rose +20.27% sequentially and the tax rate increased 20.73 percentage points to 22.86%, adding pressure below operating profit.
Revenue growth did not cover the cost increase
Consolidated revenue rose +8.79% sequentially to Rs 84.49 cr, but expenses increased faster, by +10.01% to Rs 96.29 cr. That widened the operating loss to Rs 11.80 cr and reduced operating margin by 1.26 percentage points to -13.97%.
Other income drove the return to profit
Profit before tax moved from a Rs 20.63 cr loss in Q1FY27 to a Rs 42.45 cr profit in Q2FY27, mainly because other income rose to Rs 66.89 cr from Rs 0.58 cr. Other income represented 157.57% of pre-tax profit, making the reported profit dependent on a non-operating contribution. Net profit therefore turned positive at Rs 32.75 cr, with EPS at Rs 1.05.
Operating margin deteriorated for the latest quarter
Operating margin declined from -12.71% in Q1FY27 to -13.97% in Q2FY27, marking a sequential worsening in the available quarterly trend. Interest expense rose +20.27% to Rs 7.95 cr, while the tax rate increased by 20.73 percentage points to 22.86%.
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 | ₹84 cr | ₹78 cr | +8.79% |
| Other income | ₹67 cr | ₹1 cr | +11432.76% |
| Expenses | ₹96 cr | ₹88 cr | +10.01% |
| Operating profit | ₹-12 cr | ₹-10 cr | -19.55% |
| Operating margin (%) | -13.97% | -12.71% | — |
| Interest | ₹8 cr | ₹7 cr | +20.27% |
| Depreciation | ₹5 cr | ₹5 cr | -0.85% |
| Profit before tax | ₹42 cr | ₹-21 cr | — |
| Tax | ₹10 cr | ₹-0 cr | — |
| Net profit | ₹33 cr | ₹-20 cr | — |
| EPS (₹) | ₹1.05 | ₹-0.65 | — |
What to watch
- Whether revenue growth exceeds the +10.01% sequential increase in expenses.
- Whether operating margin improves from -13.97%.
- Whether other income remains a major contributor to profit, after accounting for 157.57% of pre-tax profit.