Revenue rose 45.67%, but expense surge cut margin by 8.60 points
Consolidated net profit grew 25.25% sequentially despite a higher tax rate, while other income contributed only 2.11% of pre-tax profit.
Filed 12 Nov 2026, 18:16 IST · after market close · Nalwa Sons Investments Ltd (NSIL)
Key takeaways
- Consolidated revenue increased +45.67% sequentially, but expenses rose +774.58%, pulling operating margin down 8.60 percentage points.
- Net profit grew +25.25% sequentially even as the tax rate rose 5.99 percentage points to 27.14%.
- Operating margin of 89.70% was 38.09 percentage points above the 51.61% median for 118 reporting Financial Services peers.
Price around the results
Q2FY27 revenue growth did not translate proportionately into profit
Nalwa Sons Investments' consolidated revenue grew 45.67% sequentially, but operating profit increased 32.94%, showing weaker conversion of incremental revenue. Expenses grew 774.58%, far faster than revenue, which reduced operating margin from 98.30% in Q1FY27 to 89.70%. Net profit still rose 25.25% sequentially, but more slowly than revenue.
Higher tax rate added to the pressure on earnings conversion
The tax rate increased 5.99 percentage points sequentially to 27.14%, limiting the conversion of pre-tax profit into net profit. Other income accounted for only 2.11% of pre-tax profit, so the quarter's earnings were not materially dependent on that line.
Margin stayed well above the Financial Services peer median
The 89.70% operating margin was 38.09 percentage points above the 51.61% median among 118 Financial Services peers that had reported the same quarter. The available quarterly trend shows a decline from Q1FY27's 98.30%, making the sequential margin contraction the key change despite the sector-leading level.
Results were filed after market close
The consolidated results were filed after market close on 12 November 2026. A post-results stock reaction is therefore not included in this readout.
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 | ₹50 cr | ₹34 cr | +45.67% |
| Other income | ₹1 cr | ₹0 cr | +1285.71% |
| Expenses | ₹5 cr | ₹1 cr | +774.58% |
| Operating profit | ₹45 cr | ₹34 cr | +32.94% |
| Operating margin (%) | 89.70% | 98.30% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹0 cr | ₹0 cr | — |
| Profit before tax | ₹46 cr | ₹34 cr | +35.54% |
| Tax | ₹12 cr | ₹7 cr | +73.88% |
| Net profit | ₹33 cr | ₹27 cr | +25.25% |
| EPS (₹) | ₹65.08 | ₹51.96 | +25.25% |
Operating margin of 89.70% compares with a Financial Services sector median of 51.61% across 118 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 89.70% after the 8.60-percentage-point sequential decline.
- Whether expenses moderate from their +774.58% sequential increase.
- Whether the tax rate moves below 27.14% in the next reported quarter.