KOTARISUG returns to operating profit as expenses fall QoQ
The margin rebound came from lower expenses and interest costs, but profit quality remains weak because other income exceeded pre-tax profit.
Filed 05 Nov 2026, 13:42 IST · KOTARISUG (KOTARISUG)
Key takeaways
- Standalone operating profit swung to Rs 4.20 cr from a loss of Rs 6.24 cr in Q1FY27, lifting operating margin by 12.20 percentage points.
- Revenue rose 6.63% QoQ while expenses fell 5.47%, but other income still contributed 102.70% of pre-tax profit.
- Net profit increased to Rs 1.02 cr from Rs 0.08 cr even as the tax rate rose to 54.24% from 8.17%.
Operating loss reverses in Q2FY27
KOTARISUG reported standalone revenue growth of 6.63% QoQ to Rs 88.95 cr, while operating profit moved from a loss of Rs 6.24 cr in Q1FY27 to Rs 4.20 cr. Net profit rose to Rs 1.02 cr from Rs 0.08 cr, although the comparison is against a very small base.
Lower expenses drive the 12.20-point margin rebound
Expenses fell 5.47% QoQ even as revenue increased, so operating margin improved by 12.20 percentage points to 4.72%. Interest costs also declined 66.26%, while depreciation was broadly unchanged, rising 0.27%.
Other income remains central to reported profit
Other income fell 80.43% QoQ to Rs 2.28 cr, but still represented 102.70% of pre-tax profit. The tax rate rose by 46.07 percentage points to 54.24%, which limited the conversion of pre-tax profit into net profit.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹89 cr | ₹83 cr | +6.63% |
| Other income | ₹2 cr | ₹12 cr | -80.43% |
| Expenses | ₹85 cr | ₹90 cr | -5.47% |
| Operating profit | ₹4 cr | ₹-6 cr | — |
| Operating margin (%) | 4.72% | -7.48% | — |
| Interest | ₹1 cr | ₹2 cr | -66.26% |
| Depreciation | ₹4 cr | ₹4 cr | +0.27% |
| Profit before tax | ₹2 cr | ₹0 cr | +2366.67% |
| Tax | ₹1 cr | ₹0 cr | +12000.00% |
| Net profit | ₹1 cr | ₹0 cr | +1175.00% |
| EPS (₹) | ₹0.12 | ₹0.01 | +1100.00% |
What to watch
- Whether operating margin holds above 4.72% after the Q2FY27 rebound.
- Whether expenses continue to decline after falling 5.47% QoQ.
- Whether other income remains below Rs 2.28 cr and profit becomes less dependent on it.