Slower cost growth lifts MWL margin, but tax and interest curb profit gain
Standalone revenue rose 13.97% sequentially, while the tax rate increased 16.89 percentage points and interest expense climbed 28.89%.
Filed 15 Oct 2026, 19:16 IST · after market close · Mangalam Worldwide Ltd (MWL)
Key takeaways
- Standalone revenue grew 13.97% sequentially while expenses rose 11.62%, lifting operating margin by 1.88 percentage points.
- Profit before tax increased 43.09% sequentially, but a 16.89-percentage-point rise in the tax rate limited net-profit growth to 17.60%.
- Interest expense rose 28.89% and depreciation increased 49.66% sequentially, while EPS fell 88.13% to Rs 0.47.
Price around the results
Revenue growth improved the operating margin
Mangalam Worldwide’s standalone revenue increased 13.97% sequentially, ahead of the 11.62% rise in expenses. That operating leverage lifted the margin by 1.88 percentage points to 10.90%. Other income contributed only 3.73% of profit before tax, so the quarter’s operating improvement was not driven by non-operating income.
Finance and tax costs limited earnings conversion
Profit before tax rose 43.09% sequentially, but interest expense increased 28.89% and depreciation climbed 49.66%. The tax rate rose 16.89 percentage points to 21.87%, with tax expense increasing 524.19%, which reduced the flow-through from pre-tax profit to net profit. Net profit therefore grew 17.60%, while EPS fell 88.13% sequentially to Rs 0.47.
Q2 improvement came after a weak Q1 margin
The 10.90% operating margin in Q2FY27 was higher than the 9.02% reported in Q1FY27, making sequential margin recovery the clearest positive change. Revenue and operating profit also increased 13.97% and 37.69%, respectively, over the previous quarter. The results were filed after market close on 15 October 2026, so there is no post-result 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 | ₹360 cr | ₹316 cr | +13.97% |
| Other income | ₹1 cr | ₹1 cr | +3.13% |
| Expenses | ₹321 cr | ₹288 cr | +11.62% |
| Operating profit | ₹39 cr | ₹29 cr | +37.69% |
| Operating margin (%) | 10.90% | 9.02% | — |
| Interest | ₹18 cr | ₹14 cr | +28.89% |
| Depreciation | ₹4 cr | ₹3 cr | +49.66% |
| Profit before tax | ₹18 cr | ₹12 cr | +43.09% |
| Tax | ₹4 cr | ₹1 cr | +524.19% |
| Net profit | ₹14 cr | ₹12 cr | +17.60% |
| EPS (₹) | ₹0.47 | ₹3.96 | -88.13% |
What to watch
- Whether operating margin holds above 10.90% next quarter.
- Whether interest expense growth moderates from 28.89% sequentially.
- Whether the tax rate remains near 21.87% rather than reverting to Q1FY27’s 4.98%.