Mazda’s operating margin widens 17.97 points as expenses fall QoQ
Revenue rose +3.52% QoQ while expenses fell -16.95%, driving a largely operational increase in profit.
Filed 04 Nov 2026, 20:16 IST · after market close · MAZDA (MAZDA)
Key takeaways
- Standalone operating margin widened 17.97 percentage points QoQ to 27.10%, as expenses fell 16.95% while revenue rose 3.52%.
- Standalone EPS rose 120.49% QoQ to Rs 8.07, even as the tax rate increased 1.45 percentage points to 25.17%.
- Other income was only 1.80% of standalone pre-tax profit, so the quarter's earnings increase was mainly operational.
Expense reduction drives the Q2FY27 margin rebound
Mazda’s standalone revenue increased +3.52% QoQ, but expenses declined -16.95%, allowing operating profit to rise +207.08%. The resulting operating-margin expansion of 17.97 percentage points shows that cost control, rather than revenue growth, drove the sharp improvement from Q1FY27.
Profit quality remained mostly operational
Other income accounted for just 1.80% of standalone pre-tax profit, limiting the contribution from non-operating items. The tax rate rose 1.45 percentage points to 25.17%, so the +120.60% increase in net profit was not helped by a lower tax burden.
Sharp sequential reversal, with no market reaction yet
Compared with Q1FY27, standalone pre-tax profit increased +124.64% and EPS rose +120.49%, despite interest expense increasing +5.56%. The results were filed after market close, so there is no post-results stock reaction to assess 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 | ₹83 cr | ₹80 cr | +3.52% |
| Other income | ₹0 cr | ₹4 cr | -89.14% |
| Expenses | ₹61 cr | ₹73 cr | -16.95% |
| Operating profit | ₹23 cr | ₹7 cr | +207.08% |
| Operating margin (%) | 27.10% | 9.13% | — |
| Interest | ₹0 cr | ₹0 cr | +5.56% |
| Depreciation | ₹1 cr | ₹1 cr | -0.88% |
| Profit before tax | ₹22 cr | ₹10 cr | +124.64% |
| Tax | ₹5 cr | ₹2 cr | +138.60% |
| Net profit | ₹16 cr | ₹7 cr | +120.60% |
| EPS (₹) | ₹8.07 | ₹3.66 | +120.49% |
What to watch
- Whether standalone operating margin holds above 27.10% after its 17.97-point QoQ expansion.
- Whether expenses remain below revenue growth after declining -16.95% QoQ.
- Whether other income stays a minor contributor after representing 1.80% of pre-tax profit.