Expenses outpace revenue, sending Khadim's margin down 8.08 points
Consolidated net profit rose sequentially, but other income was 375.37% of pre-tax profit as operating profit fell 76.25%.
Filed 05 Nov 2026, 14:58 IST · KHADIM (KHADIM)
Key takeaways
- Revenue rose +21.04% QoQ, but expenses grew +31.91%, cutting operating margin by 8.08 percentage points to 1.97%.
- Other income accounted for 375.37% of pre-tax profit, making the Rs 2.65 cr net profit dependent on non-operating income.
- Operating profit fell -76.25% QoQ even as pre-tax profit rose +466.20%, reflecting the contribution from other income.
Q2 revenue growth did not convert into operating profit
On a consolidated basis, Q2FY27 revenue increased +21.04% QoQ to Rs 94.22 cr, but operating profit fell -76.25% to Rs 1.86 cr. Expenses grew +31.91%, faster than revenue, which reduced operating margin by 8.08 percentage points to 1.97%.
Other income drove the reported profit
Other income rose +158.83% QoQ to Rs 15.09 cr and accounted for 375.37% of pre-tax profit. That contribution more than offset the weak operating result, while the tax rate increased by 7.85 percentage points to 34.02%. Interest was broadly unchanged, declining -0.63% QoQ.
Margin reversed the Q1 improvement
Compared with Q1FY27, operating margin fell from 10.05% to 1.97%, reversing the prior quarter's operating leverage. Pre-tax profit nevertheless increased from Rs 0.71 cr to Rs 4.02 cr because other income rose sharply, while depreciation was nearly flat at a +0.30% QoQ change.
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 | ₹94 cr | ₹78 cr | +21.04% |
| Other income | ₹15 cr | ₹6 cr | +158.83% |
| Expenses | ₹92 cr | ₹70 cr | +31.91% |
| Operating profit | ₹2 cr | ₹8 cr | -76.25% |
| Operating margin (%) | 1.97% | 10.05% | — |
| Interest | ₹6 cr | ₹6 cr | -0.63% |
| Depreciation | ₹7 cr | ₹7 cr | +0.30% |
| Profit before tax | ₹4 cr | ₹1 cr | +466.20% |
| Tax | ₹1 cr | ₹0 cr | +661.11% |
| Net profit | ₹3 cr | ₹1 cr | +409.62% |
| EPS (₹) | ₹1.44 | ₹0.28 | +414.29% |
What to watch
- Whether operating margin recovers from 1.97% in the next quarter.
- Whether expense growth moderates from +31.91% QoQ.
- Whether other income's 375.37% share of pre-tax profit declines.