Expenses outpaced revenue as Ram Ratna’s margin slipped to 4.56%
Net profit rose 1.54% QoQ despite a 7.01-point tax-rate increase, with lower interest and other income cushioning the result.
Filed 29 Oct 2026, 18:18 IST · after market close · Ram Ratna Wires Ltd (RAMRAT)
Key takeaways
- Consolidated revenue grew 5.86% QoQ, but operating profit was nearly flat at -0.07% as expenses rose faster.
- Operating margin fell 0.27 percentage points to 4.56%, leaving Ram Ratna Wires 7.52 percentage points below the 61-peer Industrials median.
- Net profit rose 1.54% QoQ despite tax rising 44.83%, helped by lower interest and other income contributing 10.36% of pre-tax profit.
Price around the results
Revenue grew, but operating profit did not
In consolidated Q2FY27, revenue increased 5.86% QoQ to Rs 1,961.95 cr, while expenses rose 6.16% to Rs 1,872.43 cr. The faster cost growth left operating profit almost unchanged, declining 0.07% QoQ to Rs 89.52 cr.
Higher taxes offset operating stability
Operating margin narrowed 0.27 percentage points QoQ to 4.56% because expenses grew faster than revenue. Interest expense fell 5.62%, but the tax rate rose 7.01 percentage points to 30.72%, limiting the conversion of pre-tax profit into net profit. Other income accounted for 10.36% of pre-tax profit, so the 1.54% QoQ increase in net profit also had a non-operating contribution.
Margin remains near the bottom of the Industrials peer set
Ram Ratna Wires’ 4.56% operating margin was 7.52 percentage points below the 12.08% median for 61 Industrials peers that had reported, placing it fifth from the bottom. Sequentially, the margin moved down from 4.83% in Q1FY27, while the available trend shows one quarter of comparison rather than a multi-quarter direction.
Results were filed after market close
The consolidated results were filed after market close on 29 October 2026. The next market session will provide the first observable share-price response to this quarter’s margin pressure and profit-quality mix.
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 | ₹1,962 cr | ₹1,853 cr | +5.86% |
| Other income | ₹5 cr | ₹1 cr | +474.19% |
| Expenses | ₹1,872 cr | ₹1,764 cr | +6.16% |
| Operating profit | ₹90 cr | ₹90 cr | -0.07% |
| Operating margin (%) | 4.56% | 4.83% | — |
| Interest | ₹30 cr | ₹32 cr | -5.62% |
| Depreciation | ₹13 cr | ₹13 cr | +5.40% |
| Profit before tax | ₹52 cr | ₹46 cr | +11.82% |
| Tax | ₹16 cr | ₹11 cr | +44.83% |
| Net profit | ₹36 cr | ₹35 cr | +1.54% |
| EPS (₹) | ₹3.75 | ₹3.77 | -0.53% |
Operating margin of 4.56% compares with a Industrials sector median of 12.08% across 61 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 4.56% after its 0.27 percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue, after rising 6.16% versus 5.86% QoQ.
- Whether other income remains material relative to pre-tax profit after contributing 10.36% this quarter.