Operating loss narrows, but Prajay Engineers’ net loss widens 24.90%
Revenue rose +14.20% qoq and expenses fell -2.04%, but higher depreciation, interest and tax outweighed the operating improvement.
Filed 12 Nov 2026, 17:41 IST · after market close · Prajay Engineers Syndicate Ltd (PRAENG)
Key takeaways
- Consolidated operating margin improved 23.06 percentage points qoq to -38.75%, as revenue rose +14.20% while expenses fell -2.04%.
- Net loss widened 24.90% qoq to Rs 3.21 cr despite the narrower operating loss, as depreciation rose +85.39%, interest +136.36% and tax +79.17%.
- At -38.75%, operating margin was 49.98 percentage points below the 11.23% median for 329 Consumer Discretionary peers that had reported.
Price around the results
Revenue growth helped narrow the operating loss
In consolidated Q2FY27, revenue rose +14.20% qoq to Rs 5.55 cr while expenses declined -2.04% to Rs 7.70 cr. That combination narrowed the operating loss to Rs 2.15 cr and improved operating margin by 23.06 percentage points from Q1FY27. The improvement did not carry through to net profit, with the loss widening to Rs 3.21 cr.
Higher depreciation and interest erased the operating improvement
Depreciation rose +85.39% qoq to Rs 1.65 cr and interest increased +136.36% to Rs 0.26 cr, pushing the pre-tax loss to Rs 2.77 cr. Other income fell -23.21% to Rs 1.29 cr and was equivalent to -46.57% of pre-tax profit, so it offset rather than created the quarter’s result. Tax expense increased +79.17% to Rs 0.43 cr, while the tax rate fell 5.19 percentage points to -15.66%; the lower rate did not flatter net profit because the tax charge itself rose.
Margin improved qoq but remained near the bottom of the sector
The operating margin recovery from -61.81% in Q1FY27 was substantial, but the current -38.75% remained 49.98 percentage points below the 11.23% sector median. Prajay Engineers ranked ninth from the bottom among the 329 Consumer Discretionary companies that had reported. The quarter therefore shows sequential operating improvement without closing the sector profitability gap.
Results were filed after market close
The company filed its consolidated Q2FY27 results at 17:41 IST on 12 November 2026, after market close. The results were therefore too fresh for a post-results market reaction to assess.
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 | ₹6 cr | ₹5 cr | +14.20% |
| Other income | ₹1 cr | ₹2 cr | -23.21% |
| Expenses | ₹8 cr | ₹8 cr | -2.04% |
| Operating profit | ₹-2 cr | ₹-3 cr | +28.33% |
| Operating margin (%) | -38.75% | -61.81% | — |
| Interest | ₹0 cr | ₹0 cr | +136.36% |
| Depreciation | ₹2 cr | ₹1 cr | +85.39% |
| Profit before tax | ₹-3 cr | ₹-2 cr | -18.88% |
| Tax | ₹0 cr | ₹0 cr | +79.17% |
| Net profit | ₹-3 cr | ₹-3 cr | -24.90% |
| EPS (₹) | ₹-0.46 | ₹-0.37 | -24.32% |
Operating margin of -38.75% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin improves from -38.75%.
- Whether depreciation remains around the Rs 1.65 cr recorded in Q2FY27.
- Whether other income remains at Rs 1.29 cr while pre-tax profit is negative.