LEEL's Q2 margin widens as revenue drops 44.23% sequentially
Expenses fell faster than revenue, but higher interest and lower operating profit pulled profit before tax down 14.58%; the standalone results were filed after market close.
Filed 12 Nov 2026, 17:13 IST · after market close · LEEL (LEEL)
Key takeaways
- Sequential revenue growth was -44.23%, but expense growth was -48.86%, widening operating margin by 7.36 percentage points to 18.30%.
- Profit before tax fell -14.58% sequentially to Rs 0.82 cr as interest rose to Rs 0.05 cr, while the tax rate remained 0.00%.
- Operating profit declined -6.43% sequentially to Rs 1.31 cr, and EPS fell -14.61% to Rs 0.76 despite the margin improvement.
Revenue contracted, but costs fell faster
Standalone revenue growth was -44.23% sequentially, while expenses declined -48.86%. That sharper cost reduction lifted operating margin by 7.36 percentage points to 18.30%, even as operating profit growth remained -6.43% because the revenue decline was substantial.
Higher interest reduced the benefit of margin expansion
Depreciation was unchanged at Rs 0.44 cr, but interest increased from Rs 0.00 cr in Q1FY27 to Rs 0.05 cr. With no other income and a 0.00% tax rate, net profit matched profit before tax at Rs 0.82 cr; the absence of a tax charge therefore did not offset the sequential decline in operating profit.
Q2 improved margins after one weaker quarter
Operating margin rose from 10.94% in Q1FY27 to 18.30% in Q2FY27, marking a sequential improvement rather than a continuing decline. The available quarterly trend covers only this comparison, so it does not establish a multi-quarter direction. The results were filed after market close, and no market reaction is reported yet.
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 | ₹7 cr | ₹13 cr | -44.23% |
| Other income | ₹0 cr | ₹0 cr | — |
| Expenses | ₹6 cr | ₹11 cr | -48.86% |
| Operating profit | ₹1 cr | ₹1 cr | -6.43% |
| Operating margin (%) | 18.30% | 10.94% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹1 cr | ₹1 cr | -14.58% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹1 cr | ₹1 cr | -14.58% |
| EPS (₹) | ₹0.76 | ₹0.89 | -14.61% |
What to watch
- Whether operating margin remains above 18.30% in the next quarter.
- Whether expenses continue to grow more slowly than revenue after declining -48.86% sequentially.
- Whether interest stays near Rs 0.05 cr and the tax rate remains 0.00%.