RAJRILTD margin widens despite 21.42% revenue decline
Expenses fell faster than revenue, lifting operating margin, while lower tax partly supported the 13.01% rise in standalone net profit.
Filed 12 Aug 2026, 15:04 IST · RAJRILTD (RAJRILTD)
Key takeaways
- Standalone operating margin expanded 2.56 percentage points to 8.45% despite revenue declining 21.42% year on year.
- Standalone net profit rose 13.01% to Rs 6.86 cr, helped by a 3.39-percentage-point fall in the tax rate.
- Interest costs increased 29.50% and other income contributed 12.39% of standalone profit before tax.
Revenue fell, but operating profit increased
RAJRILTD’s standalone revenue declined 21.42% year on year to Rs 204.46 cr, but operating profit rose 12.58% to Rs 17.27 cr. Expenses fell 23.55%, faster than revenue, allowing operating margin to expand from 5.89% to 8.45%. The quarter’s trend record contains only the year-ago comparison, so it does not establish a multi-quarter direction.
Lower expenses offset higher finance and depreciation costs
The sharper fall in expenses was the main reason for the margin improvement. This came despite interest costs rising 29.50% and depreciation increasing 22.38% year on year. Profit before tax still rose 8.47% to Rs 8.07 cr.
Lower tax and other income improved profit quality mix
Net profit increased 13.01% to Rs 6.86 cr, ahead of profit before tax growth because the tax rate fell from 18.39% to 15.00%, a decline of 3.39 percentage points. Other income rose to Rs 1.00 cr from Rs 0.21 cr and represented 12.39% of profit before tax, so it made a meaningful contribution beyond operating performance.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | YoY |
|---|---|---|
| Revenue | ₹204 cr | -21.42% |
| Other income | ₹1 cr | +376.19% |
| Expenses | ₹187 cr | -23.55% |
| Operating profit | ₹17 cr | +12.58% |
| Operating margin (%) | 8.45% | — |
| Interest | ₹5 cr | +29.50% |
| Depreciation | ₹5 cr | +22.38% |
| Profit before tax | ₹8 cr | +8.47% |
| Tax | ₹1 cr | -11.68% |
| Net profit | ₹7 cr | +13.01% |
| EPS (₹) | ₹0.12 | +9.09% |
What to watch
- Whether revenue decline narrows from the year-on-year 21.42% contraction.
- Whether operating margin holds above 8.45%.
- Whether interest-cost growth moderates from 29.50%.