Revenue grew 14.90% QoQ, but Krystal’s margin slipped to 6.00%
Expenses outpaced revenue growth, while other income made up 25.15% of pre-tax profit.
Filed 02 Nov 2026, 17:19 IST · after market close · Krystal Integrated Services Ltd (KRYSTAL)
Key takeaways
- Q2FY27 consolidated revenue rose 14.90% QoQ, but expenses grew 15.30%, narrowing operating margin by 0.32 percentage points to 6.00%.
- Other income contributed 25.15% of pre-tax profit, while the tax rate fell 3.54 percentage points, making net profit growth less purely operational.
- Operating margin was 10.65 percentage points below the 16.65% median of 31 reported Services peers.
Price around the results
Revenue momentum did not fully reach operating profit
Krystal’s consolidated revenue increased 14.90% QoQ in Q2FY27, while operating profit grew 9.04%, showing weaker conversion of additional revenue into operating earnings. Expenses grew 15.30%, faster than revenue, which reduced operating margin by 0.32 percentage points to 6.00%. Interest expense also rose 26.82% QoQ, adding pressure below the operating line.
Lower tax rate supported net profit growth
Profit before tax grew only 3.18% QoQ, compared with 7.47% growth in net profit, as the tax rate declined to 12.50% from 16.04%. Other income was 25.15% of pre-tax profit, so a meaningful part of reported profit came from outside operations. The combination of lower tax and other income means the net profit increase was not matched by the same pace of pre-tax or operating-profit growth.
Margin remains below Services peers
Operating margin fell from 6.32% in Q1FY27 to 6.00% in Q2FY27, marking a sequential decline across the two quarters available here. Krystal’s margin was 10.65 percentage points below the 16.65% median of 31 Services peers that had reported the quarter, placing it 11th from the bottom.
Management outlines Citelum and capacity expansion
Management said the Citelum India acquisition marks Krystal’s entry into city lighting and urban infrastructure, with an expected annual revenue ambition of Rs 300-350 cr over the next 3-4 years and planned investments of approximately Rs 100 cr. The presentation said management’s priorities are disciplined growth, execution excellence and margin improvement. Management also said it plans to scale waste-management capacity from about 400 TPD to 800-1,000 TPD and expand power and substation operations into higher-voltage infrastructure.
Results were filed after market close
The consolidated results were filed after market close on 02 Nov 2026, so the release comes before any market reaction can be assessed. The next trading session will provide the first observable response to the margin decline and the expansion commentary.
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 | ₹414 cr | ₹361 cr | +14.90% |
| Other income | ₹5 cr | ₹5 cr | +0.75% |
| Expenses | ₹390 cr | ₹338 cr | +15.30% |
| Operating profit | ₹25 cr | ₹23 cr | +9.04% |
| Operating margin (%) | 6.00% | 6.32% | — |
| Interest | ₹6 cr | ₹4 cr | +26.82% |
| Depreciation | ₹3 cr | ₹3 cr | +9.33% |
| Profit before tax | ₹21 cr | ₹21 cr | +3.18% |
| Tax | ₹3 cr | ₹3 cr | -19.82% |
| Net profit | ₹19 cr | ₹17 cr | +7.47% |
| EPS (₹) | ₹13.39 | ₹12.46 | +7.46% |
Operating margin of 6.00% compares with a Services sector median of 16.65% across 31 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Citelum India is expected to generate ₹300–350 crore of annual revenue over the next 3–4 years.
- Management’s priorities are disciplined growth, execution excellence and margin improvement.
Expansion
- The Citelum India acquisition marks Krystal’s entry into city lighting and urban infrastructure.
- Planned investments supporting the Citelum entry are approximately ₹100 crore.
- Krystal plans to scale waste management capacity from about 400 TPD to 800–1,000 TPD.
- The company plans to expand power and substation operations into higher-voltage infrastructure.
- Krystal’s corporate business is expanding geographically through deeper client relationships and higher wallet share.
New initiatives
- Krystal is building a skilled and semi-skilled workforce pipeline.
- The company is enhancing service delivery through technology platforms.
- Krystal is developing bundled offerings across facility management, security, waste management, O&M and renewable services.
What to watch
- Operating margin versus the current 6.00% after expenses grew 15.30% QoQ.
- Whether interest growth moderates from 26.82% QoQ.
- Progress on management’s stated Citelum revenue ambition of Rs 300-350 cr annually over the next 3-4 years.