NRL's revenue jumped 40.62%, but operating margin fell 1.62 points
Costs grew faster than revenue and interest rose 66.95%; other income contributed 39.59% of pre-tax profit.
Filed 12 Nov 2026, 18:13 IST · after market close · NRL (NRL)
Key takeaways
- Consolidated revenue rose +40.62% QoQ, but expenses grew +43.20%, pulling operating margin down by 1.62 percentage points.
- Net profit increased +19.08% QoQ to Rs 8.80 cr, while interest expense rose +66.95%.
- Other income accounted for 39.59% of pre-tax profit, making reported earnings less operating-led.
Revenue accelerated, but costs took more of the gain
NRL's consolidated revenue rose +40.62% sequentially, but expenses increased faster at +43.20%. That gap limited the conversion of higher revenue into operating profit, which grew only +20.94%.
Margin declined as interest costs rose sharply
Operating margin narrowed by 1.62 percentage points to 9.94% because expenses outpaced revenue growth. Interest expense rose +66.95%, adding further pressure below the operating line, while the tax rate increased by 0.49 percentage points rather than providing a profit lift.
Profit quality and the after-close filing matter
Other income represented 39.59% of pre-tax profit, so the quarter's earnings were not driven entirely by operations. Operating margin moved down from 11.56% in Q1FY27 to 9.94% in Q2FY27, marking a sequential deterioration. The consolidated results were filed after market close on 12 November 2026, so there is no market reaction to assess yet.
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 | ₹112 cr | ₹79 cr | +40.62% |
| Other income | ₹5 cr | ₹4 cr | +25.75% |
| Expenses | ₹100 cr | ₹70 cr | +43.20% |
| Operating profit | ₹11 cr | ₹9 cr | +20.94% |
| Operating margin (%) | 9.94% | 11.56% | — |
| Interest | ₹2 cr | ₹1 cr | +66.95% |
| Depreciation | ₹2 cr | ₹2 cr | +7.37% |
| Profit before tax | ₹12 cr | ₹10 cr | +19.84% |
| Tax | ₹3 cr | ₹2 cr | +22.18% |
| Net profit | ₹9 cr | ₹7 cr | +19.08% |
| EPS (₹) | ₹1.16 | ₹0.94 | +23.40% |
What to watch
- Whether operating margin recovers from 9.94% after the 1.62-point QoQ decline.
- Whether expense growth stays below the +40.62% QoQ revenue growth rate.
- Whether other income's 39.59% share of pre-tax profit falls.