Rajratan revenue rises, but faster cost growth trims operating margin
Consolidated net profit grew 5.14% sequentially, helped by lower interest costs but limited by faster expense growth and a higher tax rate.
Filed 21 Oct 2026, 16:20 IST · after market close · Rajratan Global Wire Ltd (RAJRATAN)
Key takeaways
- Consolidated revenue grew 16.49% QoQ, but expenses grew faster at 17.50%, narrowing operating margin by 0.75 percentage points.
- Net profit rose 5.14% QoQ as interest expense fell 6.04%, partly offset by a 0.33-percentage-point increase in the tax rate.
- The stock fell 10.98% after the results, despite Rajratan's 12.35% operating margin being 0.11 percentage points above the sector median.
Price around the results
Revenue momentum did not fully reach profit
Consolidated revenue increased 16.49% QoQ, while operating profit rose only 9.78%, showing weaker conversion of sales growth into operating earnings. Profit before tax grew 5.61% and net profit 5.14%, as lower interest expense provided some support. Other income contributed only 2.07% of pre-tax profit, so reported earnings were not materially dependent on that line.
Costs outpaced sales and pushed margin lower
Expenses grew 17.50%, faster than revenue, reducing operating margin by 0.75 percentage points to 12.35%. Interest expense fell 6.04% QoQ, but the tax rate increased by 0.33 percentage points to 24.18%, limiting the benefit to net profit. Depreciation also increased 1.33%.
Margin was near the Consumer Discretionary peer median
Rajratan's 12.35% operating margin was 0.11 percentage points above the 12.24% median for the 34 Consumer Discretionary companies that had reported the quarter. Sequentially, margin moved down from 13.10% in Q1FY27, making cost growth the key change between the two quarters.
Shares fell sharply after the after-close filing
The consolidated results were filed after market close, and the stock fell 10.98% on the reaction date. Its relative return was -10.43%, with a 6.94-times volume ratio and a 3.46% opening gap.
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 | ₹371 cr | ₹318 cr | +16.49% |
| Other income | ₹1 cr | ₹3 cr | -80.59% |
| Expenses | ₹325 cr | ₹277 cr | +17.50% |
| Operating profit | ₹46 cr | ₹42 cr | +9.78% |
| Operating margin (%) | 12.35% | 13.10% | — |
| Interest | ₹7 cr | ₹7 cr | -6.04% |
| Depreciation | ₹8 cr | ₹8 cr | +1.33% |
| Profit before tax | ₹32 cr | ₹30 cr | +5.61% |
| Tax | ₹8 cr | ₹7 cr | +7.09% |
| Net profit | ₹24 cr | ₹23 cr | +5.14% |
| EPS (₹) | ₹4.75 | ₹4.52 | +5.09% |
Operating margin of 12.35% compares with a Consumer Discretionary sector median of 12.24% across 34 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -10.98% | -10.43% |
Volume on the results session was 6.94× its 20-day average.
What to watch
- Whether operating margin moves back above the Q1FY27 level of 13.10%.
- Whether expense growth remains below the current 17.50% QoQ rate.
- Whether interest expense stays below Rs 7.45 cr, its Q1FY27 level.