Revenue more than doubled, but Q2 operating margin fell 1.26 points
Profit growth was amplified by a 10.16-point drop in the tax rate, while expenses grew faster than revenue.
Filed 03 Nov 2026, 14:55 IST · RAJRILTD (RAJRILTD)
Key takeaways
- Revenue grew 123.26% QoQ, but expenses grew faster at 126.32%, cutting operating margin by 1.26 percentage points.
- Net profit rose 235.13% QoQ as the tax rate fell 10.16 percentage points to 4.84%.
- Q2 operating margin at 7.19% stayed above Q1FY26's 5.89% but below Q1FY27's 8.45%.
Standalone profit growth outpaced operating profit
On a standalone basis, Q2FY27 revenue rose 123.26% QoQ to Rs 456.47 cr, while operating profit increased 90.04% to Rs 32.82 cr. Profit before tax grew 199.38%, helped by a 4.05% decline in interest expense, despite depreciation rising 1.99%. Net profit increased 235.13% to Rs 22.99 cr.
Higher cost growth narrowed the operating margin
Expenses grew 126.32% QoQ, faster than revenue, which reduced operating margin by 1.26 percentage points to 7.19%. The lower tax rate also boosted reported profit: it fell 10.16 percentage points to 4.84%. Other income contributed 5.96% of profit before tax, so it was a limited part of the earnings increase.
Margin remained above last year's level but lost Q1 momentum
The operating margin improved from 5.89% in Q1FY26 to 8.45% in Q1FY27 before slipping to 7.19% in Q2FY27. That makes the latest quarter a sequential margin reversal, even though profitability remained above the comparable quarter in the trend shown.
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 | ₹456 cr | ₹204 cr | +123.26% |
| Other income | ₹1 cr | ₹1 cr | +44.00% |
| Expenses | ₹424 cr | ₹187 cr | +126.32% |
| Operating profit | ₹33 cr | ₹17 cr | +90.04% |
| Operating margin (%) | 7.19% | 8.45% | — |
| Interest | ₹5 cr | ₹5 cr | -4.05% |
| Depreciation | ₹5 cr | ₹5 cr | +1.99% |
| Profit before tax | ₹24 cr | ₹8 cr | +199.38% |
| Tax | ₹1 cr | ₹1 cr | -3.31% |
| Net profit | ₹23 cr | ₹7 cr | +235.13% |
| EPS (₹) | ₹0.41 | ₹0.12 | +241.67% |
What to watch
- Whether operating margin recovers from 7.19% after the 1.26-point sequential decline.
- Whether expense growth remains above revenue growth after 126.32% versus 123.26% in Q2FY27.
- Whether the tax rate stays near 4.84% rather than returning to the higher level seen earlier in the trend.