Oswal Pumps margin drops 4.37 points as costs outpace revenue
Revenue grew 6.91% sequentially, but higher expenses and interest drove a 29.52% fall in consolidated net profit.
Filed 12 Nov 2026, 17:39 IST · after market close · Oswal Pumps Ltd (OSWALPUMPS)
Key takeaways
- Consolidated revenue rose +6.91% QoQ, but expenses grew +12.45%, cutting operating margin by 4.37 percentage points to 11.33%.
- Consolidated net profit fell -29.52% QoQ as interest rose +34.09%, despite a 1.62 percentage-point reduction in the tax rate.
- Operating margin at 11.33% was 0.18 percentage points below the Industrials median across 230 companies that had reported the quarter.
Price around the results
Revenue growth did not translate into operating profit
Consolidated revenue increased +6.91% QoQ to Rs 506.3 cr, but expenses grew faster at +12.45% to Rs 448.91 cr. That cost mismatch reduced operating profit by -22.81% and narrowed the operating margin by 4.37 percentage points to 11.33%.
Higher interest outweighed the tax benefit
Interest expense rose +34.09% QoQ to Rs 11.25 cr, contributing to a -30.93% fall in profit before tax. Other income accounted for 11.52% of pre-tax profit, so reported earnings had a meaningful non-operating component. The tax rate fell by 1.62 percentage points to 19.46%, which cushioned the decline in net profit but did not prevent a -29.52% fall.
Margin fell sharply from Q1 and sits just below peers
Operating margin declined from 15.70% in Q1FY27 to 11.33% in Q2FY27, marking a clear sequential reset rather than continued stability. It was 0.18 percentage points below the 11.51% median margin among 230 Industrials companies that had reported the quarter.
Results were filed after market close
Oswal Pumps filed its consolidated Q2FY27 results after market close on 12 November 2026. The stock's immediate response is therefore not yet part of this readout.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹506 cr | ₹474 cr | +6.91% |
| Other income | ₹5 cr | ₹8 cr | -34.22% |
| Expenses | ₹449 cr | ₹399 cr | +12.45% |
| Operating profit | ₹57 cr | ₹74 cr | -22.81% |
| Operating margin (%) | 11.33% | 15.70% | — |
| Interest | ₹11 cr | ₹8 cr | +34.09% |
| Depreciation | ₹4 cr | ₹6 cr | -25.49% |
| Profit before tax | ₹47 cr | ₹69 cr | -30.93% |
| Tax | ₹9 cr | ₹14 cr | -36.24% |
| Net profit | ₹38 cr | ₹54 cr | -29.52% |
| EPS (₹) | ₹3.34 | ₹4.86 | -31.28% |
Operating margin of 11.33% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.33% after the 4.37 percentage-point QoQ decline.
- Whether expense growth moderates from +12.45% QoQ against revenue growth of +6.91%.
- Whether interest growth moderates from +34.09% QoQ and other income's 11.52% share of pre-tax profit declines.