Lower interest and tax costs lift Q2 profit despite margin squeeze
Revenue grew +9.31% QoQ, but expenses grew faster and pushed operating margin down 0.49 percentage points.
Filed 28 Oct 2026, 20:52 IST · after market close · Onemi Technology Solutions Ltd (KISSHT)
Key takeaways
- Consolidated net profit rose +31.59% QoQ as interest expense fell -11.60% and the tax rate dropped 6.67 percentage points.
- Operating margin narrowed 0.49 percentage points to 30.48% because expenses grew +10.08%, faster than revenue at +9.31%.
- Onemi's 30.48% operating margin was 29.38 percentage points below the 59.86% median for 43 reported financial-services peers.
Price around the results
Lower interest and tax costs drove the profit increase
Consolidated net profit rose +31.59% QoQ to Rs 125.12 cr, while profit before tax increased +20.79% to Rs 154.25 cr. Interest expense fell -11.60%, and the tax rate declined from 25.55% to 18.88%, which helped net profit grow faster than pre-tax profit. Other income accounted for 5.50% of pre-tax profit, so it was not the main driver of the quarter's earnings increase.
Costs outpaced revenue and narrowed operating margin
Revenue increased +9.31% QoQ to Rs 731.81 cr, but expenses grew +10.08% to Rs 508.73 cr. The faster cost growth reduced operating margin by 0.49 percentage points to 30.48%. This is the first sequential margin direction visible in the reported trend, moving down from 30.97% in Q1FY27.
Margin remained below the financial-services peer median
Onemi's 30.48% operating margin was 29.38 percentage points below the 59.86% median among 43 financial-services companies that had reported the same quarter. The comparison places the company 12 positions from the bottom of that peer set.
Results were filed after the market close
The consolidated results were filed at 20:52 IST on 28 October 2026, after market close. There is therefore no post-results stock reaction to assess in this update.
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 | ₹732 cr | ₹670 cr | +9.31% |
| Other income | ₹8 cr | ₹7 cr | +20.28% |
| Expenses | ₹509 cr | ₹462 cr | +10.08% |
| Operating profit | ₹223 cr | ₹207 cr | +7.59% |
| Operating margin (%) | 30.48% | 30.97% | — |
| Interest | ₹72 cr | ₹82 cr | -11.60% |
| Depreciation | ₹5 cr | ₹5 cr | +2.28% |
| Profit before tax | ₹154 cr | ₹128 cr | +20.79% |
| Tax | ₹29 cr | ₹33 cr | -10.70% |
| Net profit | ₹125 cr | ₹95 cr | +31.59% |
| EPS (₹) | ₹7.28 | ₹6.41 | +13.57% |
Operating margin of 30.48% compares with a Financial Services sector median of 59.86% across 43 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 30.48% after the 0.49-point QoQ decline.
- Whether expense growth stays below the +10.08% QoQ pace, which exceeded revenue growth of +9.31%.
- Whether interest expense remains below the Q1FY27 level after falling -11.60% QoQ.