Lokesh Machines lifts profit 29.70% QoQ as margin barely expands
Revenue growth slightly outpaced expenses, while a 3.52-percentage-point tax-rate decline supported the increase in net profit.
Filed 12 Nov 2026, 13:31 IST · Lokesh Machines Ltd (LOKESHMACH)
Key takeaways
- Standalone net profit rose 29.70% sequentially to Rs 1.31 cr, helped by a lower tax rate.
- Operating margin edged up 0.07 percentage points to 17.39% as revenue growth of +8.85% slightly exceeded expense growth of +8.77%.
- Other income contributed 11.49% of standalone pre-tax profit, making earnings quality a point to monitor.
Price around the results
Revenue growth translated into a modest operating gain
Lokesh Machines reported standalone revenue of Rs 60.37 cr in Q2FY27, up +8.85% sequentially from Q1FY27. Expenses rose +8.77%, so operating profit increased +9.38% to Rs 10.50 cr and operating margin improved by just 0.07 percentage points. The company filed these results on 12 Nov 2026.
Lower tax rate supported profit, while interest rose
Net profit increased +29.70% sequentially to Rs 1.31 cr, despite interest expense rising +10.11% to Rs 5.12 cr. The tax rate fell 3.52 percentage points to 25.00%, which helped net profit grow faster than pre-tax profit. Other income was Rs 0.20 cr and accounted for 11.49% of pre-tax profit, so it was a meaningful but not dominant contributor.
Margin remained above the reported Industrials peer median
The 17.39% operating margin was 5.88 percentage points above the 11.51% median for the 230 Industrials peers that had reported the same quarter. Sequentially, margin moved up from 17.32% in Q1FY27, but the available trend shows only one prior quarter and does not establish a multi-quarter direction.
The next quarter will test the small margin improvement
Investors can track whether operating margin holds above 17.39% as revenue and expenses remain closely matched in growth. Interest expense also merits attention after its +10.11% sequential increase, while other income's 11.49% share of pre-tax profit provides a reference for assessing earnings quality.
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 | ₹60 cr | ₹55 cr | +8.85% |
| Other income | ₹0 cr | ₹0 cr | -37.50% |
| Expenses | ₹50 cr | ₹46 cr | +8.77% |
| Operating profit | ₹11 cr | ₹10 cr | +9.38% |
| Operating margin (%) | 17.39% | 17.32% | — |
| Interest | ₹5 cr | ₹5 cr | +10.11% |
| Depreciation | ₹4 cr | ₹4 cr | -0.52% |
| Profit before tax | ₹2 cr | ₹1 cr | +23.40% |
| Tax | ₹0 cr | ₹0 cr | +10.00% |
| Net profit | ₹1 cr | ₹1 cr | +29.70% |
| EPS (₹) | ₹0.60 | ₹0.49 | +22.45% |
Operating margin of 17.39% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 17.39%.
- Whether interest expense moderates from Rs 5.12 cr after rising +10.11% sequentially.
- Whether other income remains near its 11.49% share of pre-tax profit.