Costs outpace revenue as Omnitech margin falls 1.18 points
Higher interest and depreciation limited profit growth, while other income contributed 20.63% of pre-tax profit.
Filed 04 Nov 2026, 17:16 IST · after market close · Omnitech Engineering Ltd (OMNI)
Key takeaways
- Revenue grew 5.34% QoQ, but expenses grew 7.13%, narrowing operating margin by 1.18 percentage points to 29.19%.
- Net profit rose only 2.83% QoQ as interest increased 12.25% and depreciation 19.78%, despite a 0.88 percentage-point decline in the tax rate.
- Omnitech’s 29.19% operating margin was 16.95 percentage points above the 12.24% median for 143 reported Industrials peers.
Price around the results
Q2 growth came with a cost squeeze
In consolidated results, revenue increased 5.34% QoQ, but expenses rose faster at 7.13%. That gap reduced operating margin by 1.18 percentage points to 29.19%, even as operating profit grew 1.24%. The quarter therefore showed sales momentum without equivalent operating leverage.
Below-operating-line costs diluted earnings
Interest expense rose 12.25% QoQ and depreciation increased 19.78%, keeping pre-tax profit growth to 1.64% and net profit growth to 2.83%. A 0.88 percentage-point fall in the tax rate provided some support to net profit. Other income represented 20.63% of pre-tax profit, so reported earnings were partly supported by non-operating income.
Margin remains well above the Industrials median
Omnitech’s 29.19% operating margin was 16.95 percentage points above the 12.24% median among 143 Industrials companies that had reported the quarter. Sequentially, however, margin moved down from 30.37% in Q1FY27, marking a weaker direction despite the sector-level advantage.
Results were filed after market close
The consolidated results were filed after market close on 04 November 2026. The quarter’s key market-relevant issue is the trade-off between 5.34% revenue growth and 7.13% expense growth, alongside the increase in interest and depreciation.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹176 cr | ₹167 cr | +5.34% |
| Other income | ₹8 cr | ₹6 cr | +43.94% |
| Expenses | ₹124 cr | ₹116 cr | +7.13% |
| Operating profit | ₹51 cr | ₹51 cr | +1.24% |
| Operating margin (%) | 29.19% | 30.37% | — |
| Interest | ₹12 cr | ₹10 cr | +12.25% |
| Depreciation | ₹8 cr | ₹6 cr | +19.78% |
| Profit before tax | ₹40 cr | ₹40 cr | +1.64% |
| Tax | ₹10 cr | ₹10 cr | -2.01% |
| Net profit | ₹31 cr | ₹30 cr | +2.83% |
| EPS (₹) | ₹2.45 | ₹2.40 | +2.08% |
Operating margin of 29.19% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
What to watch
- Whether expenses grow slower than revenue after the 7.13% versus 5.34% QoQ gap.
- Whether operating margin holds above 29.19% after falling 1.18 percentage points QoQ.
- Whether other income remains a material contributor after accounting for 20.63% of pre-tax profit.