Orient Technologies' operating margin expands 3.36 points sequentially
Consolidated revenue grew faster than expenses, but the 10.08% margin remained 9.3 points below the IT peer median.
Filed 02 Nov 2026, 18:24 IST · after market close · Orient Technologies Ltd (ORIENTTECH)
Key takeaways
- Consolidated revenue grew +8.84% qoq while expenses rose +4.92%, lifting operating margin by 3.36 percentage points to 10.08%.
- Net profit increased +126.69% qoq as operating profit rose +63.30% and interest expense fell -13.66%.
- At 10.08%, operating margin was 9.3 percentage points below the 19.38% median for 44 reporting IT peers.
Price around the results
Revenue growth drove operating leverage
Consolidated revenue rose +8.84% qoq to Rs 219.77 cr, while expenses grew +4.92% to Rs 197.61 cr. The wider gap between revenue and expense growth lifted operating profit by +63.30% and expanded operating margin by 3.36 percentage points. This was the main reason net profit rose +126.69% qoq to Rs 11.72 cr.
Lower non-operating costs added to the profit lift
Interest expense fell -13.66% qoq and depreciation declined -12.55%, providing additional support below operating profit. The tax rate eased by 0.67 percentage points to 24.22%, which also helped net profit, but other income contributed only 6.59% of profit before tax. The quarter's earnings increase was therefore led mainly by operating improvement rather than other income.
Margin improved but remained low against IT peers
Operating margin rose from 6.72% in Q1FY27 to 10.08% in Q2FY27, marking a 3.36-point sequential recovery. It was still 9.3 percentage points below the 19.38% median among 44 Information Technology companies that had reported the same quarter, placing Orient Technologies sixth from the bottom. The consolidated results were filed after market close on 02 Nov 2026, so the share-price response is not covered here.
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 | ₹220 cr | ₹202 cr | +8.84% |
| Other income | ₹1 cr | ₹2 cr | -52.78% |
| Expenses | ₹198 cr | ₹188 cr | +4.92% |
| Operating profit | ₹22 cr | ₹14 cr | +63.30% |
| Operating margin (%) | 10.08% | 6.72% | — |
| Interest | ₹2 cr | ₹2 cr | -13.66% |
| Depreciation | ₹6 cr | ₹7 cr | -12.55% |
| Profit before tax | ₹15 cr | ₹7 cr | +124.53% |
| Tax | ₹4 cr | ₹2 cr | +119.30% |
| Net profit | ₹12 cr | ₹5 cr | +126.69% |
| EPS (₹) | ₹2.56 | ₹1.13 | +126.55% |
Operating margin of 10.08% compares with a Information Technology sector median of 19.38% across 44 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.08% next quarter.
- Whether revenue growth remains ahead of expense growth, compared with +8.84% and +4.92% respectively in Q2FY27.
- Whether the 9.3-percentage-point gap to the 19.38% IT peer median narrows.