OCCL's Q2 profit drops 30.78% as costs outpace revenue
Revenue grew 17.01% sequentially, but faster expense growth cut operating margin by 9.39 percentage points.
Filed 06 Nov 2026, 15:55 IST · after market close · OCCLLTD (OCCLLTD)
Key takeaways
- Standalone revenue rose 17.01% QoQ to Rs 257.04 cr, but expenses grew 32.30%, pushing operating margin down 9.39 percentage points.
- Net profit fell 30.78% QoQ to Rs 27.86 cr, while EPS declined 30.77% to Rs 5.58.
- Interest expense increased 31.73% QoQ and the tax rate rose 0.86 percentage points, while other income was only 0.88% of pre-tax profit.
Revenue growth did not translate into profit growth
OCCL's standalone revenue increased 17.01% QoQ, but operating profit fell 22.15% as expenses rose faster than sales. Net profit consequently declined 30.78% and EPS fell 30.77% from Q1FY27. The results were filed after market close.
Expense growth drove the margin contraction
Expenses grew 32.30% QoQ against 17.01% revenue growth, cutting operating margin by 9.39 percentage points to 18.68%. Interest expense also rose 31.73%, adding pressure below the operating line. The tax rate increased 0.86 percentage points, so the quarter's profit decline was not softened by a lower tax rate; other income contributed just 0.88% of pre-tax profit.
Q2 reversed the higher-profit profile seen in Q1
Compared with Q1FY27, revenue was higher but operating profit, pre-tax profit and net profit all fell, pointing to a sharp sequential deterioration in earnings conversion. The key change was the widening gap between revenue growth and expense growth, alongside higher interest costs.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹257 cr | ₹220 cr | +17.01% |
| Other income | ₹0 cr | ₹2 cr | -82.99% |
| Expenses | ₹209 cr | ₹158 cr | +32.30% |
| Operating profit | ₹48 cr | ₹62 cr | -22.15% |
| Operating margin (%) | 18.68% | 28.07% | — |
| Interest | ₹3 cr | ₹2 cr | +31.73% |
| Depreciation | ₹7 cr | ₹7 cr | +1.10% |
| Profit before tax | ₹38 cr | ₹54 cr | -29.97% |
| Tax | ₹10 cr | ₹14 cr | -27.56% |
| Net profit | ₹28 cr | ₹40 cr | -30.78% |
| EPS (₹) | ₹5.58 | ₹8.06 | -30.77% |
What to watch
- Whether standalone operating margin holds above 18.68%.
- Whether expense growth moderates from 32.30% QoQ.
- Whether interest growth moderates from 31.73% QoQ.