Orchasp margin worsens as costs rise despite higher reported profit
Consolidated net profit increased 10.71% QoQ, but operating losses widened as revenue fell and expenses grew faster.
Filed 11 Nov 2026, 18:00 IST · after market close · Orchasp Ltd (ORCHASP)
Key takeaways
- Orchasp’s consolidated operating margin fell 43.62 percentage points QoQ to -59.92% as expenses rose 25.21% while revenue fell 8.65%.
- Net profit rose 10.71% QoQ to Rs 0.31 cr, but other income equalled 470.97% of pre-tax profit.
- At -59.92%, operating margin ranked last among 77 Information Technology peers reporting the quarter, 75.78 percentage points below the sector median.
Price around the results
Revenue fell while operating losses widened
Orchasp’s consolidated revenue declined 8.65% QoQ to Rs 1.90 cr, while expenses increased 25.21% to Rs 3.03 cr. That pushed the operating loss to Rs 1.14 cr from Rs 0.34 cr in Q1FY27, with operating profit down 235.29% QoQ. Reported net profit still rose 10.71% to Rs 0.31 cr because other income increased 131.75% to Rs 1.46 cr.
Other income drove profit quality
Other income accounted for 470.97% of pre-tax profit, so the Rs 0.31 cr net profit was not generated by operations. The tax rate declined by 0.07 percentage points QoQ to 0.46%, providing only a small additional lift to profit. Interest remained at Rs 0.00 cr, while depreciation was Rs 0.01 cr.
Margin recovery reversed in Q2FY27
Operating margin had improved from -252.75% in Q4FY26 to -16.30% in Q1FY27, before slipping to -59.92% in Q2FY27. Among 77 Information Technology peers that reported the quarter, Orchasp’s margin was 75.78 percentage points below the median of 15.86% and ranked last. The results were filed after market close on 11 November 2026, so there is no post-results stock 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 | ₹2 cr | ₹2 cr | -8.65% |
| Other income | ₹1 cr | ₹1 cr | +131.75% |
| Expenses | ₹3 cr | ₹2 cr | +25.21% |
| Operating profit | ₹-1 cr | ₹-0 cr | -235.29% |
| Operating margin (%) | -59.92% | -16.30% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹0 cr | ₹0 cr | +10.71% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹0 cr | ₹0 cr | +10.71% |
| EPS (₹) | ₹0.01 | ₹0.01 | +0.00% |
Operating margin of -59.92% compares with a Information Technology sector median of 15.86% across 77 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +20.00% | +19.82% |
Volume on the results session was 9.68× its 20-day average.
What to watch
- Whether operating margin recovers from -59.92% in the next reported quarter.
- Whether expense growth moderates from +25.21% QoQ while revenue growth remains at -8.65%.
- Whether other income remains a major contributor after accounting for 470.97% of Q2FY27 pre-tax profit.