Expenses outpaced revenue, squeezing Pyramid Technoplast's Q2 margin
Sequential profit fell as higher costs and interest outweighed revenue growth, while the stock dropped 3.09% after the filing.
Filed 06 Nov 2026, 12:25 IST · Pyramid Technoplast Ltd (PYRAMID)
Key takeaways
- Revenue grew +6.99% sequentially, but expenses rose faster at +8.05%, narrowing operating margin by 0.90 percentage points to 8.21%.
- Net profit fell -9.19% sequentially as interest costs increased +11.97% and operating profit declined -3.55%.
- The stock fell -3.09% after the results, while Pyramid’s operating margin was 3.29 percentage points below the 11.5% median for 197 reported Industrials peers.
Price around the results
Q2 growth did not translate into operating profit
Standalone revenue increased +6.99% sequentially to Rs 238.04 cr, but operating profit declined -3.55% to Rs 19.54 cr. Expenses grew +8.05%, faster than revenue, which reduced operating margin to 8.21% from 9.11% in Q1FY27. This is the second reported quarter in the trend, so it shows a sequential decline rather than a longer multi-quarter pattern.
Higher interest added to the pressure on profit
Interest expense rose +11.97% sequentially, while depreciation increased +1.57%, adding below-operating-line pressure as operating profit declined. Profit before tax fell -10.46% and net profit fell -9.19%; the lower tax rate, down 1.11 percentage points to 24.06%, partly cushioned the decline. Other income contributed 6.08% of pre-tax profit, so it was a modest support rather than the main driver of earnings.
Margin trails the reported Industrials peer median
Pyramid’s 8.21% operating margin was 3.29 percentage points below the 11.5% median among 197 Industrials peers that had reported the same quarter. The gap places the quarter’s margin below the sector comparison, alongside the sequential deterioration caused by expenses growing faster than revenue.
Shares fell after the results
The stock declined -3.09% on the results date, with a -2.34% opening gap and a -5.10% relative move versus the market. Trading volume was 2.18 times the reference level, indicating a heavier market response to the filing.
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 | ₹238 cr | ₹222 cr | +6.99% |
| Other income | ₹1 cr | ₹1 cr | -25.49% |
| Expenses | ₹219 cr | ₹202 cr | +8.05% |
| Operating profit | ₹20 cr | ₹20 cr | -3.55% |
| Operating margin (%) | 8.21% | 9.11% | — |
| Interest | ₹4 cr | ₹4 cr | +11.97% |
| Depreciation | ₹4 cr | ₹4 cr | +1.57% |
| Profit before tax | ₹13 cr | ₹14 cr | -10.46% |
| Tax | ₹3 cr | ₹4 cr | -14.25% |
| Net profit | ₹9 cr | ₹10 cr | -9.19% |
| EPS (₹) | ₹5.14 | ₹2.85 | +80.35% |
Operating margin of 8.21% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.09% | -5.10% |
Volume on the results session was 2.18× its 20-day average.
What to watch
- Whether operating margin recovers from 8.21% after the 0.90-percentage-point sequential decline.
- Whether expenses grow more slowly than revenue after rising +8.05% versus revenue growth of +6.99%.
- Whether interest expense moderates after increasing +11.97% sequentially.