Expenses outpace revenue as Pennar margin slips to 9.98%
Consolidated net profit rose 6.64% QoQ, but higher interest and a 26.34% contribution from other income limited the improvement.
Filed 13 Nov 2026, 20:13 IST · after market close · Pennar Industries Ltd (PENIND)
Key takeaways
- Consolidated revenue rose +16.70% QoQ, but expenses grew faster at +17.57%, narrowing operating margin by 0.67 percentage points.
- Net profit increased only +6.64% QoQ as interest expense rose +8.52% and other income contributed 26.34% of pre-tax profit.
- Pennar's 9.98% operating margin was 1.48 percentage points below the 11.46% median for 267 Industrials peers.
Price around the results
Revenue momentum came with a margin give-up
Consolidated revenue grew +16.70% QoQ to Rs 1,015.80 cr, while operating profit rose a slower +9.39% to Rs 101.36 cr. Expenses grew +17.57%, outpacing revenue and reducing operating margin from 10.65% in Q1FY27 to 9.98% in Q2FY27.
Higher interest and other income shaped profit
Interest expense increased +8.52% QoQ, while the tax rate rose 1.52 percentage points to 25.71%, both limiting the conversion of operating profit into net profit. Other income accounted for 26.34% of pre-tax profit, so reported earnings had a material non-operating contribution. Net profit consequently grew +6.64% QoQ, slower than revenue.
Margin stayed below the Industrials peer median
Pennar's 9.98% operating margin was 1.48 percentage points below the 11.46% median among 267 Industrials companies that had reported the same quarter. The available quarterly trend shows a sequential decline from 10.65% in Q1FY27 to 9.98% in Q2FY27.
Results were filed after market close
The consolidated results were filed at 20:13 IST on 13 November 2026, after market close. There is no immediate market 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 | ₹1,016 cr | ₹870 cr | +16.70% |
| Other income | ₹13 cr | ₹14 cr | -4.63% |
| Expenses | ₹914 cr | ₹778 cr | +17.57% |
| Operating profit | ₹101 cr | ₹93 cr | +9.39% |
| Operating margin (%) | 9.98% | 10.65% | — |
| Interest | ₹39 cr | ₹36 cr | +8.52% |
| Depreciation | ₹24 cr | ₹24 cr | +3.51% |
| Profit before tax | ₹51 cr | ₹47 cr | +8.82% |
| Tax | ₹13 cr | ₹11 cr | +15.66% |
| Net profit | ₹38 cr | ₹35 cr | +6.64% |
| EPS (₹) | ₹2.79 | ₹2.62 | +6.49% |
Operating margin of 9.98% compares with a Industrials sector median of 11.46% across 267 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers above the Q1FY27 level of 10.65%.
- Whether expense growth moderates from +17.57% against revenue growth of +16.70%.
- Whether interest growth remains above +8.52% and other income stays near 26.34% of pre-tax profit.