Operating margin improves, but Mukand profit plunges as other income fades
Lower costs lifted operating margin, but the loss of other income and a higher tax rate cut net profit despite revenue declining 3.45% sequentially.
Filed 12 Nov 2026, 13:45 IST · Mukand Ltd (MUKANDLTD)
Key takeaways
- Consolidated operating margin rose 4.07 percentage points sequentially to 4.60% as expenses fell 7.41% against a 3.45% revenue decline.
- Net profit fell 92.50% sequentially to Rs 4.30 cr as other income dropped 94.94% and the tax rate rose 63.68 percentage points.
- Mukand’s 4.60% operating margin was 6.91 percentage points below the 11.51% Industrials median across 230 reported peers.
Price around the results
Lower costs drive the operating recovery
Mukand’s consolidated revenue declined 3.45% sequentially, but expenses fell faster at 7.41%, lifting operating margin by 4.07 percentage points to 4.60%. The improvement marks a clear recovery from the 0.53% margin recorded in Q1FY27, although the operating margin remains modest.
Other income and tax absorbed the operating gain
The operating improvement did not flow through to net profit because other income fell 94.94% sequentially to Rs 5.32 cr; it still accounted for 39.06% of pre-tax profit in Q2FY27. The tax rate rose 63.68 percentage points to 68.43%, helping drive a 92.50% sequential decline in net profit to Rs 4.30 cr.
Margin remains below the Industrials peer median
The sequential margin recovery is visible against Q1FY27, but Mukand’s 4.60% operating margin was 6.91 percentage points below the 11.51% median for the 230 Industrials peers that had reported. With no year-on-year comparison in the reported results, the quarter-to-quarter margin direction is the clearer signal.
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 | ₹1,315 cr | ₹1,362 cr | -3.45% |
| Other income | ₹5 cr | ₹105 cr | -94.94% |
| Expenses | ₹1,255 cr | ₹1,355 cr | -7.41% |
| Operating profit | ₹61 cr | ₹7 cr | +743.31% |
| Operating margin (%) | 4.60% | 0.53% | — |
| Interest | ₹34 cr | ₹34 cr | +0.88% |
| Depreciation | ₹18 cr | ₹18 cr | -0.28% |
| Profit before tax | ₹14 cr | ₹60 cr | -77.38% |
| Tax | ₹9 cr | ₹3 cr | +225.87% |
| Net profit | ₹4 cr | ₹57 cr | -92.50% |
| EPS (₹) | ₹0.30 | ₹3.97 | -92.44% |
Operating margin of 4.60% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 4.60% in the next quarter.
- Whether other income remains a smaller contributor than the 39.06% share of pre-tax profit recorded in Q2FY27.
- Whether the tax rate moves down from 68.43%.