Modison's margin drops 7.38 points as costs outpace revenue
Consolidated revenue grew +3.16% sequentially, but expenses rose +12.51%; lower tax partly offset the resulting profit decline.
Filed 16 Oct 2026, 14:35 IST · MODISONLTD (MODISONLTD)
Key takeaways
- Consolidated operating margin fell 7.38 percentage points sequentially to 11.14% as expenses grew +12.51% against revenue growth of +3.16%.
- Consolidated net profit declined -31.18% sequentially to Rs 23.29 cr despite a 1.72 percentage-point reduction in the tax rate.
- Other income accounted for 22.78% of consolidated profit before tax, making the quarter's profit quality an important consideration.
Revenue growth was overtaken by cost growth
Modison reported consolidated revenue growth of +3.16% sequentially, but expenses increased +12.51%, leaving operating profit down -37.95%. The cost increase was therefore more than four times the pace of revenue growth, driving the operating margin down 7.38 percentage points from Q1FY27.
Other income cushioned a weaker operating quarter
Interest expense rose +14.15% sequentially, adding to the pressure below operating profit. Other income increased +197.46% and contributed 22.78% of profit before tax, so reported profit included a meaningful non-operating contribution. The tax rate fell 1.72 percentage points to 24.43%, which partly softened the decline in net profit.
Profit and EPS fell sharply from Q1FY27
Consolidated net profit declined -31.18% sequentially and EPS fell -31.16% to Rs 7.18, following the weaker operating result. The reported trend shows operating margin at 18.52% in Q1FY27 before dropping to 11.14% in Q2FY27.
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 |
|---|---|---|---|
| Revenue | ₹279 cr | ₹270 cr | +3.16% |
| Other income | ₹7 cr | ₹2 cr | +197.46% |
| Expenses | ₹248 cr | ₹220 cr | +12.51% |
| Operating profit | ₹31 cr | ₹50 cr | -37.95% |
| Operating margin (%) | 11.14% | 18.52% | — |
| Interest | ₹5 cr | ₹4 cr | +14.15% |
| Depreciation | ₹2 cr | ₹2 cr | +2.16% |
| Profit before tax | ₹31 cr | ₹46 cr | -32.75% |
| Tax | ₹8 cr | ₹12 cr | -37.15% |
| Net profit | ₹23 cr | ₹34 cr | -31.18% |
| EPS (₹) | ₹7.18 | ₹10.43 | -31.16% |
What to watch
- Whether consolidated expenses growth moderates from +12.51% sequentially.
- Whether operating margin recovers from 11.14% after the 7.38 percentage-point decline.
- Whether other income remains a material contributor after accounting for 22.78% of profit before tax.