Kalyani Steels lifts operating margin 2.02 percentage points QoQ
Revenue growth outpaced expense growth, while net profit rose +17.03% despite a higher tax rate.
Filed 28 Oct 2026, 14:09 IST · Kalyani Steels Ltd (KSL)
Key takeaways
- Consolidated revenue rose +6.41% QoQ while expenses grew +3.74%, lifting operating margin by 2.02 percentage points to 21.68%.
- Net profit increased +17.03% QoQ to Rs 79.87 cr despite a 0.63 percentage-point rise in the tax rate to 26.31%.
- Other income contributed 15.67% of pre-tax profit, while the 21.68% operating margin was 10.65 percentage points above the 47-peer Industrials median.
Price around the results
Revenue growth translated into a larger operating profit gain
On a consolidated basis, revenue rose +6.41% QoQ to Rs 494.38 cr and operating profit grew +17.33% to Rs 107.19 cr. Revenue growth outpaced expense growth, lifting operating margin by 2.02 percentage points to 21.68%. With only Q1FY27 in the available trend, the quarter shows sequential improvement but does not establish a multi-quarter direction.
Margin improvement came from slower cost growth, not lower taxes
Expenses grew +3.74% QoQ, below revenue growth of +6.41%, which drove the margin expansion. Other income of Rs 16.98 cr accounted for 15.67% of pre-tax profit, making it a meaningful contributor to reported earnings. The tax rate rose 0.63 percentage points to 26.31%, while interest expense increased +10.56%.
Operating margin remained well above the Industrials peer median
Kalyani Steels' 21.68% operating margin was 10.65 percentage points above the 11.03% median for 47 Industrials peers that had reported the same quarter. The comparison places the company well above the sector's reported middle ground.
Initial stock reaction was modest despite heavier trading
The stock was up +0.14% at the reaction anchor after opening with a +0.59% gap, while volume was 3.1 times the reference level. Without a multi-quarter reaction benchmark, the move cannot be classified as typical or unusual for the stock.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹494 cr | ₹465 cr | +6.41% |
| Other income | ₹17 cr | ₹16 cr | +7.47% |
| Expenses | ₹387 cr | ₹373 cr | +3.74% |
| Operating profit | ₹107 cr | ₹91 cr | +17.33% |
| Operating margin (%) | 21.68% | 19.66% | — |
| Interest | ₹2 cr | ₹2 cr | +10.56% |
| Depreciation | ₹14 cr | ₹14 cr | +2.00% |
| Profit before tax | ₹108 cr | ₹92 cr | +18.01% |
| Tax | ₹29 cr | ₹24 cr | +20.86% |
| Net profit | ₹80 cr | ₹68 cr | +17.03% |
| EPS (₹) | ₹18.30 | ₹15.63 | +17.08% |
Operating margin of 21.68% compares with a Industrials sector median of 11.03% across 47 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.14% | +0.36% |
Volume on the results session was 3.10× its 20-day average.
What to watch
- Whether operating margin holds above 21.68% after the 2.02 percentage-point QoQ improvement.
- Whether expense growth remains below revenue growth, currently +3.74% versus +6.41% QoQ.
- Whether other income's 15.67% share of pre-tax profit changes materially.