Revenue rises +15.80% YoY, but margin falls 6.03 percentage points QoQ
Consolidated profit growth was helped by lower taxes and other income, while sequential revenue weakness and faster cost growth cut operating margin.
Filed 04 Nov 2026, 15:02 IST · C.E. Info Systems Ltd (MAPMYINDIA)
Key takeaways
- Consolidated revenue grew +15.80% YoY while operating margin expanded 9.42 percentage points, as expenses rose only +1.30%.
- Sequentially, revenue fell -5.71% and operating margin narrowed 6.03 percentage points because expenses grew +3.78%.
- Other income contributed 28.07% of pre-tax profit, while the YoY tax rate fell 6.34 percentage points and amplified net profit growth.
Price around the results
YoY operating leverage, sequential reversal
C.E. Info Systems delivered consolidated revenue growth of +15.80% YoY, while expenses increased only +1.30%, lifting operating margin by 9.42 percentage points. The sequential picture reversed: revenue declined -5.71% and expenses rose +3.78%, reducing operating margin by 6.03 percentage points. Its 34.14% margin was 15.14 percentage points above the 19.00% median for 58 Information Technology peers that had reported the quarter.
Margin has declined for two straight quarters
Operating margin fell from 44.65% in Q4FY26 to 40.17% in Q1FY27 and 34.14% in Q2FY27, marking two consecutive sequential declines after the Q4 peak. Other income also fell -27.09% QoQ, while the tax rate rose 4.20 percentage points, adding to the sequential fall in pre-tax profit and net profit. The YoY tax-rate decline of 6.34 percentage points supported net profit growth, but other income still accounted for 28.07% of pre-tax profit.
IoT transition weighs on reported services revenue
Management said IoT services revenue declined YoY because a large government project moved from upfront technical-services revenue to subscriptions. The presentation said NCASE solutions went live on Mahindra BE6 Sporteq, MSIL Brezza and Force Motors Urbania, while its technology stack was rolled out on three two-wheeler models. The company also said it won a highway infrastructure logistics planning and management order using real-time traffic data, and management said it sees long-term opportunities across its markets and products.
No market reaction yet; recent results have been mixed
No post-results market reaction is available yet. Across the eight recent results in the history provided, the stock rose three times and fell five times, with a median absolute move of 6.60%, so its historical response has more often been negative than positive.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹132 cr | ₹140 cr | -5.71% | +15.80% |
| Other income | ₹14 cr | ₹19 cr | -27.09% | +59.31% |
| Expenses | ₹87 cr | ₹84 cr | +3.78% | +1.30% |
| Operating profit | ₹45 cr | ₹56 cr | -19.85% | +59.96% |
| Operating margin (%) | 34.14% | 40.17% | — | — |
| Interest | ₹0 cr | ₹0 cr | -27.78% | -68.29% |
| Depreciation | ₹9 cr | ₹9 cr | +1.97% | +17.51% |
| Profit before tax | ₹49 cr | ₹66 cr | -24.95% | +73.45% |
| Tax | ₹14 cr | ₹16 cr | -12.02% | +42.01% |
| Net profit | ₹35 cr | ₹50 cr | -29.13% | +90.33% |
| EPS (₹) | ₹6.41 | ₹9.09 | -29.48% | +93.07% |
Operating margin of 34.14% compares with a Information Technology sector median of 19.00% across 58 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
- NCASE solutions went live on Mahindra BE6 Sporteq, MSIL Brezza and Force Motors Urbania.
- The company rolled out its technology stack on Bajaj Pulsar 125, Samarth Mobility Avore and Ampere Magnus GMax.
Guidance & outlook
- The company sees significant business visibility and long-term opportunities across all market and product segments.
- The company aims to accelerate AI-led innovation, create new growth opportunities and drive sustainable, profitable growth.
New orders
- The company won a highway infrastructure logistics planning and management order based on real-time traffic data.
New initiatives
- The company is strengthening its leadership team across technology, product and business to support its next growth phase.
Problems & risks
- IoT services revenue declined year on year mainly because a large government project shifted from upfront technical services revenue to subscriptions.
What to watch
- Whether next-quarter revenue improves from Rs 131.74 cr after the -5.71% QoQ decline.
- Whether operating margin holds above 34.14% after two consecutive sequential declines.
- Whether other income remains near 28.07% of pre-tax profit and continues to affect earnings quality.