Revenue jumps 63.44% QoQ, but margin remains well below sector median
Lower expense growth drove the operating recovery, while other income contributed 35.59% of profit before tax.
Filed 27 Oct 2026, 14:09 IST · Khandwala Securities Ltd (KHANDSE)
Key takeaways
- Revenue grew 63.44% QoQ while expenses rose 34.89%, lifting operating margin by 18.29 percentage points to 14.58%.
- Net profit rose 637.50% QoQ, but other income contributed 35.59% of profit before tax and the tax rate was -0.41%.
- The stock gained 18.85% at the reported reaction point, while operating margin remained 46.71 percentage points below the 35-peer sector median.
Price around the results
Revenue rebound reverses the Q1 operating loss
Khandwala Securities reported consolidated revenue growth of 63.44% QoQ, while expenses increased 34.89%. That operating leverage reversed the previous quarter's negative margin and expanded operating margin by 18.29 percentage points to 14.58%. The improvement was operational rather than tax-led, as the tax rate was effectively nil at -0.41%.
Other income remains material to reported profit
Other income accounted for 35.59% of profit before tax, making the earnings mix less dependent on operating profit than the headline net-profit growth suggests. Interest expense rose 12.50% QoQ and depreciation increased 14.29%, but neither offset the operating turnaround. With tax at -0.41%, net profit broadly reflected pre-tax profit rather than a meaningful tax benefit.
Margin remains well below financial-services peers
The 14.58% operating margin was 46.71 percentage points below the 61.29% median among 35 Financial Services peers that had reported. The trend shows a sharp sequential reversal from a -3.71% margin in Q1FY27, but only one earlier quarter is available here, so it does not establish a multi-quarter direction.
Stock reaction was sharply positive
The stock's reported reaction was a 18.85% gain, despite a -1.56% opening gap; relative performance was 18.86% and volume was 1.58 times the reference level. The result was filed during market hours, so the reaction was available in the same session.
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 | ₹4 cr | ₹2 cr | +63.44% |
| Other income | ₹0 cr | ₹0 cr | -34.38% |
| Expenses | ₹3 cr | ₹2 cr | +34.89% |
| Operating profit | ₹1 cr | ₹-0 cr | — |
| Operating margin (%) | 14.58% | -3.71% | — |
| Interest | ₹0 cr | ₹0 cr | +12.50% |
| Depreciation | ₹0 cr | ₹0 cr | +14.29% |
| Profit before tax | ₹1 cr | ₹0 cr | +637.50% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹1 cr | ₹0 cr | +637.50% |
| EPS (₹) | ₹0.39 | ₹0.06 | +550.00% |
Operating margin of 14.58% compares with a Financial Services sector median of 61.29% across 35 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +18.85% | +18.86% |
Volume on the results session was 1.58× its 20-day average.
What to watch
- Whether operating margin holds above 14.58% after the Q1FY27 loss.
- Whether other income's share of profit before tax falls below 35.59%.
- Whether expense growth remains below the 63.44% revenue growth recorded this quarter.