Midhani margin recovers, but other income remains material to profit
Revenue growth outpaced expenses in Q2FY27, while a lower tax rate and reduced interest costs amplified the rise in consolidated net profit.
Filed 11 Nov 2026, 17:05 IST · after market close · Mishra Dhatu Nigam Ltd (MIDHANI)
Key takeaways
- Revenue grew 41.09% year on year as expenses rose 39.16%, lifting operating margin by 1.15 percentage points to 16.77%.
- Net profit more than doubled year on year to Rs 27.84 cr, helped by a 4.47-percentage-point fall in the tax rate and lower interest costs.
- Other income accounted for 26.94% of profit before tax, making reported earnings partly dependent on non-operating income.
Price around the results
Revenue growth outpaced costs in Q2FY27
Mishra Dhatu Nigam's consolidated revenue grew 41.09% year on year and 23.56% sequentially. Expenses increased more slowly, at 39.16% year on year and 21.40% sequentially, which supported operating profit growth of 51.51% and 35.54%, respectively. The company reported the results after market close on 11 November 2026.
Margin recovered from the Q1FY27 trough
Operating margin rose 1.15 percentage points year on year and 1.48 percentage points sequentially to 16.77%, because revenue growth exceeded expense growth in both comparisons. This was a recovery from 15.29% in Q1FY27, but remained below the 20.99% recorded in Q4FY26. Among 208 Industrials peers that had reported, MIDHANI's margin was 5.23 percentage points above the 11.54% median.
Lower tax and interest supported profit quality
Net profit growth outpaced operating profit growth as the tax rate fell 4.47 percentage points year on year and 3.16 percentage points sequentially, while interest costs declined 17.96% and 21.88%, respectively. Other income contributed 26.94% of profit before tax, so the reported profit was not generated entirely by operations. The tax benefit and non-operating income are therefore important when assessing the quarter's earnings mix.
Margin trend is a recovery, not a new peak
Operating margin moved from 20.04% in Q1FY26 to 15.62% in Q2FY26, recovered to 19.82% in Q3FY26 and 20.99% in Q4FY26, then fell to 15.29% in Q1FY27 before recovering to 16.77%. The latest quarter therefore breaks the sequential decline seen from Q4FY26 to Q1FY27, but does not yet restore the previous quarter's margin level. After its last eight results, the stock fell six times and rose twice, with a median absolute move of 4.51%; there is no current reaction yet because this result was filed after market close.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹296 cr | ₹239 cr | +23.56% | +41.09% |
| Other income | ₹10 cr | ₹10 cr | +3.35% | +15.04% |
| Expenses | ₹246 cr | ₹203 cr | +21.40% | +39.16% |
| Operating profit | ₹50 cr | ₹37 cr | +35.54% | +51.51% |
| Operating margin (%) | 16.77% | 15.29% | — | — |
| Interest | ₹5 cr | ₹6 cr | -21.88% | -17.96% |
| Depreciation | ₹16 cr | ₹17 cr | -0.90% | -1.91% |
| Profit before tax | ₹39 cr | ₹24 cr | +61.61% | +101.45% |
| Tax | ₹11 cr | ₹8 cr | +45.53% | +74.17% |
| Net profit | ₹28 cr | ₹16 cr | +69.03% | +114.81% |
| EPS (₹) | ₹1.49 | ₹0.88 | +69.32% | +115.94% |
Operating margin of 16.77% compares with a Industrials sector median of 11.54% across 208 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 16.77% after the Q2FY27 recovery.
- Whether revenue growth continues to exceed expense growth, following the sequential comparison of 23.56% versus 21.40%.
- Whether other income's 26.94% share of profit before tax declines in the next quarter.