Mindteck margin slips as costs and tax rate rise in Q2FY27
Revenue grew 1.36% sequentially, but operating profit fell 4.31% and net profit declined 10.53% after a higher tax rate.
Filed 04 Nov 2026, 16:27 IST · after market close · Mindteck (India) Ltd (MINDTECK)
Key takeaways
- Consolidated revenue rose 1.36% sequentially, but expenses grew 1.84%, reducing operating profit by 4.31%.
- Operating margin narrowed 0.44 percentage points to 7.37% as costs grew faster than revenue.
- Net profit fell 10.53% sequentially as the tax rate rose 7.41 percentage points, while other income contributed 31.77% of pre-tax profit.
Price around the results
Revenue growth did not translate into operating profit
Mindteck's consolidated revenue increased 1.36% sequentially in Q2FY27, but operating profit declined 4.31%. Expenses rose 1.84%, outpacing revenue growth and leaving less operating leverage. Net profit fell 10.53% to Rs 7.48, while EPS declined 10.69% to Rs 2.34.
Higher costs and tax reduced profit conversion
Operating margin narrowed 0.44 percentage points to 7.37% because expenses grew faster than revenue. The tax rate rose 7.41 percentage points to 20.51%, amplifying the decline in net profit despite interest expense falling 4.55%. Other income accounted for 31.77% of pre-tax profit, so reported profit included a sizeable non-operating contribution.
Margin remains well below the IT peer median
Mindteck's operating margin of 7.37% was 11.63 percentage points below the 19.0% median among 58 Information Technology companies that had reported the quarter. The company ranked seventh from the bottom on this measure. Sequentially, margin moved down from 7.81% in Q1FY27, extending the immediate quarter-on-quarter weakening.
Results were filed after market close
The consolidated results were filed after market close on 04 Nov 2026. With no post-results market reaction yet, the stock response cannot be assessed against its past-results trading pattern.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹106 cr | ₹104 cr | +1.36% |
| Other income | ₹3 cr | ₹3 cr | +5.65% |
| Expenses | ₹98 cr | ₹96 cr | +1.84% |
| Operating profit | ₹8 cr | ₹8 cr | -4.31% |
| Operating margin (%) | 7.37% | 7.81% | — |
| Interest | ₹0 cr | ₹0 cr | -4.55% |
| Depreciation | ₹1 cr | ₹1 cr | +2.68% |
| Profit before tax | ₹9 cr | ₹10 cr | -2.18% |
| Tax | ₹2 cr | ₹1 cr | +53.17% |
| Net profit | ₹7 cr | ₹8 cr | -10.53% |
| EPS (₹) | ₹2.34 | ₹2.62 | -10.69% |
Operating margin of 7.37% compares with a Information Technology sector median of 19.00% across 58 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.37% next quarter.
- Whether expenses grow more slowly than the 1.36% sequential revenue increase.
- Whether the tax rate moves back toward the 13.10% reported in Q1FY27 and other income falls below 31.77% of pre-tax profit.