Navkar’s 14.90% margin trails Services peers by 16.31 points
Standalone Q2FY27 profit included Rs 4.49 cr of other income alongside Rs 15.67 cr of pre-tax profit.
Filed 23 Oct 2026, 14:30 IST · Navkar Corporation Ltd (NAVKARCORP)
Key takeaways
- Navkar's standalone operating margin of 14.9% was 8.43 percentage points above the Services peer median.
- Standalone profit before tax of Rs 15.67 cr included Rs 4.49 cr of other income, so earnings were not entirely operating-driven.
- Interest of Rs 4.86 cr and depreciation of Rs 17.22 cr reduced the standalone operating profit of Rs 33.26 cr before tax.
Price around the results
A wide operating-margin lead over Services peers
Navkar reported standalone revenue of Rs 223.2 cr and operating profit of Rs 33.26 cr for Q2FY27. Its 14.9% operating margin was 8.43 percentage points above the median for the five Services peers that had reported the quarter. With no sequential or year-on-year comparison in the reported set, the peer gap is the clearest benchmark for this quarter.
Depreciation and interest narrowed the earnings conversion
The standalone operating profit of Rs 33.26 cr reduced to profit before tax of Rs 15.67 cr after depreciation of Rs 17.22 cr and interest of Rs 4.86 cr. Other income of Rs 4.49 cr also supported the reported pre-tax result, making the earnings mix partly dependent on non-operating income. The tax rate was 24.9%, and net profit was Rs 11.77 cr.
No quarter-on-quarter trend or market reaction to assess
The available results do not provide a sequential or year-on-year comparison, so there is no basis here to identify a margin direction across quarters. The stock reaction and its history after results are also not covered, leaving the operating-margin comparison as the main external context for this standalone quarter.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹223 cr |
| Other income | ₹4 cr |
| Expenses | ₹190 cr |
| Operating profit | ₹33 cr |
| Operating margin (%) | 14.90% |
| Interest | ₹5 cr |
| Depreciation | ₹17 cr |
| Profit before tax | ₹16 cr |
| Tax | ₹4 cr |
| Net profit | ₹12 cr |
| EPS (₹) | ₹0.78 |
Operating margin of 14.90% compares with a Services sector median of 6.47% across 5 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.25% | -6.93% |
Volume on the results session was 4.12× its 20-day average.
What to watch
- Whether standalone operating margin holds above 14.9%.
- Whether other income remains at Rs 4.49 cr or changes its contribution to pre-tax profit.
- Whether depreciation stays below the standalone operating profit of Rs 33.26 cr.