Paushak's margin slips as expenses outpace revenue growth
Standalone Q2FY27 revenue rose +6.91% QoQ, but a higher tax rate pushed net profit down -10.53%; the results were filed after market close.
Filed 16 Oct 2026, 17:13 IST · after market close · Paushak Ltd (PAUSHAKLTD)
Key takeaways
- Standalone revenue rose 6.91% sequentially, but expenses grew 8.74%, narrowing operating margin by 1.19 percentage points.
- Net profit fell 10.53% sequentially as the tax rate increased 6.76 percentage points to 27.33%.
- Other income contributed 10.91% of standalone pre-tax profit, while EPS declined 10.60% to Rs 5.48.
Price around the results
Revenue growth did not translate into wider operating profit
Paushak reported standalone revenue of Rs 89.32 cr in Q2FY27, up 6.91% sequentially, while operating profit increased only 2.77% to Rs 26.36 cr. Expenses grew 8.74%, faster than revenue, which reduced operating margin by 1.19 percentage points to 29.51%.
Higher tax and lower other income weighed on reported profit
Pre-tax profit declined 2.21% sequentially despite the increase in operating profit, as other income fell 35.56% to Rs 2.03 cr and represented 10.91% of pre-tax profit. The tax rate rose from 20.57% to 27.33%, pushing net profit down 10.53% to Rs 13.51 cr and EPS down 10.60% to Rs 5.48.
Q2 margin was below Q1, with results filed after market close
The sequential comparison shows operating margin moving from 30.70% in Q1FY27 to 29.51% in Q2FY27, while depreciation was broadly unchanged and interest declined 0.74%. The standalone results were filed after market close on 16 October 2026, so there is no market reaction to assess yet.
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 | ₹89 cr | ₹84 cr | +6.91% |
| Other income | ₹2 cr | ₹3 cr | -35.56% |
| Expenses | ₹63 cr | ₹58 cr | +8.74% |
| Operating profit | ₹26 cr | ₹26 cr | +2.77% |
| Operating margin (%) | 29.51% | 30.70% | — |
| Interest | ₹1 cr | ₹1 cr | -0.74% |
| Depreciation | ₹8 cr | ₹8 cr | +0.24% |
| Profit before tax | ₹19 cr | ₹19 cr | -2.21% |
| Tax | ₹5 cr | ₹4 cr | +29.92% |
| Net profit | ₹14 cr | ₹15 cr | -10.53% |
| EPS (₹) | ₹5.48 | ₹6.13 | -10.60% |
What to watch
- Whether expenses grow more slowly than revenue after rising 8.74% versus revenue growth of 6.91%.
- Whether operating margin recovers from 29.51% after the 1.19-percentage-point sequential decline.
- Whether the tax rate moves away from 27.33% and reduces pressure on net profit.