Revenue rose 10.19%, but operating margin fell 1.77 percentage points
Higher other income and a lower tax rate lifted net profit even as costs grew faster than revenue.
Filed 04 Nov 2026, 13:24 IST · NDR Auto Components Ltd (NDRAUTO)
Key takeaways
- Consolidated revenue grew 10.19% sequentially, but operating profit fell 6.79% as expenses rose faster than sales.
- Net profit increased 20.61% sequentially, helped by other income contributing 36.23% of pre-tax profit and a 1.54-percentage-point lower tax rate.
- Operating margin fell 1.77 percentage points to 9.68%, which was 2.23 percentage points below the 11.91% median for 223 reported sector peers.
Price around the results
Revenue growth did not convert into operating profit
NDR Auto Components reported consolidated revenue growth of 10.19% sequentially to Rs 244.02 cr, but operating profit declined 6.79% to Rs 23.63 cr. Expenses increased 12.38%, outpacing revenue growth and pushing operating margin down 1.77 percentage points to 9.68%. This was the first sequential comparison available in the reported trend, so the quarter shows weaker operating conversion despite higher sales.
Other income supported the profit increase
Net profit rose 20.61% sequentially to Rs 19.78 cr despite the operating profit decline. Other income increased 213.89% to Rs 9.04 cr and accounted for 36.23% of pre-tax profit, making the profit increase materially dependent on non-operating income. The tax rate fell 1.54 percentage points, while interest expense rose 45.95%, partly offsetting that support.
Operating margin was below the sector median
The company’s 9.68% operating margin was 2.23 percentage points below the 11.91% median among 223 Consumer Discretionary peers that had reported the same quarter. The sequential margin decline therefore left NDR Auto Components below the broader sector comparison as well as below its Q1FY27 level.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹244 cr | ₹221 cr | +10.19% |
| Other income | ₹9 cr | ₹3 cr | +213.89% |
| Expenses | ₹220 cr | ₹196 cr | +12.38% |
| Operating profit | ₹24 cr | ₹25 cr | -6.79% |
| Operating margin (%) | 9.68% | 11.45% | — |
| Interest | ₹1 cr | ₹1 cr | +45.95% |
| Depreciation | ₹7 cr | ₹6 cr | +4.08% |
| Profit before tax | ₹25 cr | ₹21 cr | +18.25% |
| Tax | ₹5 cr | ₹5 cr | +10.00% |
| Net profit | ₹20 cr | ₹16 cr | +20.61% |
| EPS (₹) | ₹8.32 | ₹6.90 | +20.58% |
Operating margin of 9.68% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.68% after the 1.77-percentage-point sequential decline.
- Whether other income remains a material contributor after accounting for 36.23% of pre-tax profit.
- Whether interest expense continues to rise after its 45.95% sequential increase.