KSH margin improves as revenue growth outpaces expenses
Standalone net profit rose +13.57% QoQ, but interest costs increased +28.76% and other income contributed 8.68% of pre-tax profit.
Filed 04 Nov 2026, 21:06 IST · after market close · KSH International Ltd (KSHINTL)
Key takeaways
- Standalone operating margin improved 0.41 percentage points QoQ to 6.80% as revenue grew +13.35%, faster than expenses at +12.85%.
- Net profit rose +13.57% QoQ to Rs 47.95 cr even as interest expense increased +28.76%, with the tax rate falling 0.88 percentage points.
- At 6.80%, KSH's operating margin was 5.44 percentage points below the 12.24% Industrials median across 143 reported peers.
Price around the results
Revenue growth lifted the standalone operating result
KSH's standalone revenue increased +13.35% QoQ, while expenses grew +12.85%, allowing operating profit to rise +20.63%. Operating margin consequently improved 0.41 percentage points to 6.80%. Net profit increased +13.57% to Rs 47.95 cr, below the pace of operating-profit growth.
Interest costs rose faster than earnings, while tax aided profit
Interest expense increased +28.76% QoQ, which limited the conversion of operating profit into pre-tax profit. Other income accounted for 8.68% of pre-tax profit, so earnings included a noticeable non-operating contribution. The tax rate fell 0.88 percentage points, helping net profit grow faster than the +12.23% increase in pre-tax profit.
Margin improved sequentially but stayed below the sector median
The 6.80% operating margin was 5.44 percentage points below the 12.24% median for the 143 Industrials peers that had reported. Sequentially, margin moved up from 6.39% in Q1FY27, but the available trend covers only that prior quarter rather than a longer run of results.
Management linked utilisation efforts to OEM demand and exports
Management said domestic and international OEM demand supported higher utilisation of expanded specialised magnet-winding-wire capacity, while strong export growth increased exports' contribution to the revenue mix. The company said it had completed 96% of the planned Supa expansion six months ahead of schedule and had received trial HVDC export orders during Q2FY27. Management said the approved Phase 3 expansion could take total capacity to 72,200 MT by Q1FY2029.
The filing came after market close
KSH filed these standalone results after market close on 4 November 2026. A market response is therefore not yet part of this quarter's report.
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 | ₹1,320 cr | ₹1,164 cr | +13.35% |
| Other income | ₹6 cr | ₹8 cr | -32.36% |
| Expenses | ₹1,230 cr | ₹1,090 cr | +12.85% |
| Operating profit | ₹90 cr | ₹74 cr | +20.63% |
| Operating margin (%) | 6.80% | 6.39% | — |
| Interest | ₹22 cr | ₹17 cr | +28.76% |
| Depreciation | ₹9 cr | ₹8 cr | +9.19% |
| Profit before tax | ₹64 cr | ₹57 cr | +12.23% |
| Tax | ₹16 cr | ₹15 cr | +8.31% |
| Net profit | ₹48 cr | ₹42 cr | +13.57% |
| EPS (₹) | ₹7.08 | ₹6.23 | +13.64% |
Operating margin of 6.80% compares with a Industrials sector median of 12.24% across 143 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.
This quarter
- Domestic and international OEM demand drove the quarter's focus on higher utilization of specialized magnet winding-wire capacity.
- Strong export growth increased exports' contribution to revenue mix during the second quarter.
Guidance & outlook
- KSH expects total capacity to reach 72,200 MT by Q1 FY2029 after the approved expansion.
Expansion
- KSH completed 96% of its planned Supa expansion six months ahead of schedule.
New orders
- KSH received trial HVDC export orders during Q2 FY2027.
New initiatives
- KSH focused on increasing utilization of its expanded capacity, particularly for specialized magnet winding wires.
What to watch
- Whether standalone operating margin holds above 6.80% in the next quarter.
- Whether interest-cost growth moderates from +28.76% QoQ.
- Progress toward the stated 72,200 MT capacity by Q1FY2029.