Kotyark's Q2 margin jumps 7.95 points as expenses fall faster
Revenue fell 33.39% sequentially, but a 14.95-point tax-rate decline lifted net profit 39.91%.
Filed 28 Oct 2026, 17:19 IST · after market close · KOTYARK (KOTYARK)
Key takeaways
- Sequentially, revenue fell 33.39% but expenses fell 39.47%, lifting operating margin by 7.95 percentage points to 20.68%.
- Net profit rose 39.91% QoQ as the tax rate fell 14.95 percentage points to 25.34%, despite interest expense rising 5.11%.
- Other income contributed only 0.24% of profit before tax, so the earnings improvement was not driven by non-operating income.
Lower revenue, sharper expense reduction
Kotyark's consolidated revenue declined 33.39% QoQ to Rs 61.27 cr, while expenses fell 39.47% to Rs 48.59 cr. Because costs contracted faster than revenue, operating profit still increased 8.20% and operating margin widened by 7.95 percentage points to 20.68%. This points to better cost absorption despite the lower sales base.
Tax-rate relief amplified profit growth
Profit before tax rose 11.91% QoQ even as interest expense increased 5.11% and depreciation edged up 0.40%. Net profit growth was faster at 39.91% because the tax rate fell from 40.29% to 25.34%, a decline of 14.95 percentage points. Other income was just 0.24% of profit before tax, limiting its role in the quarter's earnings.
Operating margin improved from Q1
The sequential comparison shows operating margin rising from 12.73% in Q1FY27 to 20.68% in Q2FY27. Revenue, however, moved down from Rs 91.98 cr to Rs 61.27 cr, so the margin improvement came alongside a smaller revenue base. The available quarter-to-quarter trend therefore points to margin improvement, not yet a longer multi-quarter direction.
Results filed after market close
The consolidated results were filed after market close on 28 October 2026. The market's post-results response is therefore not covered 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 | ₹61 cr | ₹92 cr | -33.39% |
| Other income | ₹0 cr | ₹0 cr | +100.00% |
| Expenses | ₹49 cr | ₹80 cr | -39.47% |
| Operating profit | ₹13 cr | ₹12 cr | +8.20% |
| Operating margin (%) | 20.68% | 12.73% | — |
| Interest | ₹2 cr | ₹2 cr | +5.11% |
| Depreciation | ₹2 cr | ₹2 cr | +0.40% |
| Profit before tax | ₹8 cr | ₹7 cr | +11.91% |
| Tax | ₹2 cr | ₹3 cr | -29.57% |
| Net profit | ₹6 cr | ₹4 cr | +39.91% |
| EPS (₹) | ₹0.55 | ₹0.34 | +61.76% |
What to watch
- Whether operating margin holds above 20.68% in the next quarter.
- Whether the tax rate stays near 25.34% after Q1's 40.29%.
- Whether interest expense growth reverses after rising 5.11% QoQ.