PTC Industries' operating profit jumps YoY, but margin slips QoQ
Revenue nearly doubled YoY as costs lagged growth, but sequential margin pressure came from a sharper revenue decline than the fall in expenses.
Filed 14 Aug 2026, 20:36 IST · after market close · PTC Industries Ltd (PTCIL)
Key takeaways
- Consolidated net profit rose +465.70% YoY as revenue grew +97.43% and operating margin expanded 16.45 percentage points.
- Sequentially, net profit fell -51.28% because revenue declined -14.93% while expenses fell only -6.55%, narrowing operating margin by 6.69 percentage points.
- The stock rose 8.05% on the reaction day, far above its 2.08% median move after the past eight results.
Price around the results
A sharp YoY recovery, weaker sequential momentum
PTC Industries reported consolidated net profit growth of +465.70% YoY, supported by revenue growth of +97.43%. The comparison is flattered by the low Q1FY26 base, when operating margin was 9.04%; the current margin improved by 16.45 percentage points. Sequentially, however, net profit declined -51.28% as revenue fell -14.93%.
Sequential margin loss came from slower cost reduction
Expenses declined only -6.55% QoQ against the -14.93% revenue fall, so operating margin narrowed by 6.69 percentage points. Interest expense also rose +50.83% sequentially, while the tax rate increased by 3.30 percentage points. Other income contributed 14.48% of pre-tax profit, making it a material part of reported earnings.
Margin remains above the Industrials peer median
The 25.49% consolidated operating margin was 11.07 percentage points above the median for 146 Industrials companies that had reported the same quarter. The quarterly margin path remains volatile: it rose from 9.04% in Q1FY26 to 20.64% in Q2FY26, fell to 15.88% in Q3FY26, reached 32.18% in Q4FY26 and then declined to 25.49%.
The market reaction was unusual for this stock
The stock rose 8.05% on the reaction day and was up 13.76% by the fifth trading day. That response was well above the 2.08% median absolute move across the past eight results, when the stock rose twice and fell six times. The reaction also came after the consolidated results were filed after market close.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹192 cr | ₹225 cr | -14.93% | +97.43% |
| Other income | ₹5 cr | ₹12 cr | -55.07% | -49.67% |
| Expenses | ₹143 cr | ₹153 cr | -6.55% | +61.72% |
| Operating profit | ₹49 cr | ₹73 cr | -32.61% | +456.31% |
| Operating margin (%) | 25.49% | 32.18% | — | — |
| Interest | ₹4 cr | ₹2 cr | +50.83% | +116.77% |
| Depreciation | ₹14 cr | ₹10 cr | +44.47% | +60.37% |
| Profit before tax | ₹37 cr | ₹72 cr | -49.25% | +306.08% |
| Tax | ₹8 cr | ₹13 cr | -39.60% | +93.59% |
| Net profit | ₹29 cr | ₹60 cr | -51.28% | +465.70% |
| EPS (₹) | ₹19.47 | ₹39.96 | -51.28% | +465.99% |
Operating margin of 25.49% compares with a Industrials sector median of 14.42% across 146 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.05% | +8.37% |
| Next session | +3.89% | — |
| 5 sessions | +13.76% | +14.37% |
Volume on the results session was 17.55× its 20-day average.
What to watch
- Whether consolidated operating margin recovers from 25.49% after the 6.69-percentage-point sequential decline.
- Whether expenses remain aligned with revenue after falling only -6.55% QoQ against the -14.93% revenue decline.
- Whether other income remains a material contributor after accounting for 14.48% of pre-tax profit.