NINtec expands margin as revenue growth outpaces expense growth
Consolidated operating margin rose 1.38 percentage points sequentially, while other income contributed 9.55% of pre-tax profit.
Filed 29 Oct 2026, 16:38 IST · after market close · NINtec Systems Ltd (NINSYS)
Key takeaways
- Consolidated operating margin widened 1.38 percentage points sequentially to 27.28% as revenue grew 5.10% while expenses rose 3.15%.
- Net profit rose 14.89% sequentially to Rs 10.57 cr, although other income contributed 9.55% of pre-tax profit.
- NINtec's 27.28% operating margin was 8.75 percentage points above the 18.53% median for 34 reported IT peers.
Price around the results
Q2 growth converted into faster profit growth
NINtec's consolidated revenue increased 5.10% sequentially, while operating profit grew 10.69% and net profit rose 14.89% to Rs 10.57 cr. EPS increased 14.95% to Rs 5.69, reflecting the stronger profit conversion. The results were filed after market close on 29 Oct 2026, so there is no market reaction to assess yet.
Slower expense growth lifted operating margin
Expenses grew 3.15% sequentially, below the 5.10% increase in revenue, which drove the 1.38-percentage-point margin expansion. Depreciation rose 11.63%, but interest was unchanged; the tax rate increased 0.27 percentage points, so tax-rate movement did not aid profit growth. Other income accounted for 9.55% of pre-tax profit, making it a notable contributor to reported earnings.
Margin remains above the reported IT peer median
The 27.28% operating margin was 8.75 percentage points above the 18.53% median among 34 Information Technology peers that had reported the quarter. Sequentially, margin improved from 25.90% in Q1FY27, with revenue growth ahead of expense growth providing the main operating explanation.
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 | ₹48 cr | ₹46 cr | +5.10% |
| Other income | ₹1 cr | ₹1 cr | +92.75% |
| Expenses | ₹35 cr | ₹34 cr | +3.15% |
| Operating profit | ₹13 cr | ₹12 cr | +10.69% |
| Operating margin (%) | 27.28% | 25.90% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹0 cr | ₹0 cr | +11.63% |
| Profit before tax | ₹14 cr | ₹12 cr | +15.41% |
| Tax | ₹3 cr | ₹3 cr | +16.67% |
| Net profit | ₹11 cr | ₹9 cr | +14.89% |
| EPS (₹) | ₹5.69 | ₹4.95 | +14.95% |
Operating margin of 27.28% compares with a Information Technology sector median of 18.53% across 34 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 27.28%.
- Whether expense growth remains below the 5.10% revenue-growth rate.
- Whether other income's contribution falls from 9.55% of pre-tax profit.