Radiant margin falls as expenses outpace revenue in Q2FY27
Revenue rose +3.56% QoQ, but expenses grew +8.09%; other income contributed 87.76% of pre-tax profit.
Filed 12 Nov 2026, 18:27 IST · after market close · Radiant Cash Management Services Ltd (RADIANTCMS)
Key takeaways
- Consolidated operating margin fell 3.98 percentage points QoQ to 4.96% as expenses grew +8.09% against revenue growth of +3.56%.
- Consolidated net profit fell -60.73% QoQ to Rs 2.05 cr, even as the lower 16.15% tax rate cushioned the decline.
- Radiant's 4.96% operating margin was 11.69 percentage points below the Services median across 65 reporting peers.
Price around the results
Revenue growth failed to translate into Q2FY27 profit
Radiant reported consolidated revenue growth of +3.56% QoQ, but operating profit fell -42.49% and net profit declined -60.73%. The earnings contraction followed a widening gap between revenue growth and expense growth. Profit before tax fell -63.70% QoQ to Rs 2.45 cr.
Expense growth drove the margin compression
Expenses grew +8.09% QoQ, more than twice the +3.56% increase in revenue, reducing operating margin by 3.98 percentage points. The 16.15% tax rate was 6.57 percentage points lower than in Q1FY27, which partly cushioned the fall in net profit. Other income accounted for 87.76% of pre-tax profit, making reported profit quality weaker than operating profit alone would suggest.
Margin now trails the Services peer median
Operating margin fell from 8.94% in Q1FY27 to 4.96% in Q2FY27, marking a sharp sequential deterioration. The quarter's margin was 11.69 percentage points below the 16.65% median for 65 Services peers that had reported. Radiant ranked 17th from the bottom on this measure.
Management highlighted customer additions and process digitisation
Management said the company added 113 new end customers during the quarter. The presentation said QR-code scanning is being used to record collected cash, reducing manual intervention and possible errors. It also said API integrations with some clients' ERP systems provide real-time cash-management data tracking.
Results were filed after market close
Radiant filed the consolidated results after market close on 12 November 2026. The filing therefore does not provide a same-day stock-market reaction to the quarter.
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 | ₹110 cr | ₹106 cr | +3.56% |
| Other income | ₹2 cr | ₹2 cr | -12.60% |
| Expenses | ₹104 cr | ₹96 cr | +8.09% |
| Operating profit | ₹5 cr | ₹9 cr | -42.49% |
| Operating margin (%) | 4.96% | 8.94% | — |
| Interest | ₹2 cr | ₹2 cr | -0.92% |
| Depreciation | ₹3 cr | ₹3 cr | -0.33% |
| Profit before tax | ₹2 cr | ₹7 cr | -63.70% |
| Tax | ₹0 cr | ₹2 cr | -73.86% |
| Net profit | ₹2 cr | ₹5 cr | -60.73% |
| EPS (₹) | ₹0.26 | ₹0.60 | -56.67% |
Operating margin of 4.96% compares with a Services sector median of 16.65% across 65 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company added 113 new end customers during the quarter.
New initiatives
- The company uses QR code scanning to record collected cash and reduce manual intervention and errors.
- The company created API integrations with some clients’ ERP systems for real-time cash-management data tracking.
What to watch
- Whether operating margin recovers from 4.96% after the 3.98 percentage-point QoQ decline.
- Whether expenses grow slower than revenue after +8.09% versus +3.56% QoQ.
- Whether other income remains as large as 87.76% of pre-tax profit.