Revenue rose 23.08% QoQ, but margin fell for a third straight quarter
Expenses grew faster than revenue, while a lower tax rate and other income helped net profit grow faster than pre-tax profit.
Filed 30 Oct 2026, 16:12 IST · after market close · Ratnaveer Precision Engineering Ltd (RATNAVEER)
Key takeaways
- Consolidated revenue increased +23.08% QoQ to Rs 387.24 cr, but operating margin fell 0.80 percentage points to 9.43%.
- Net profit rose +31.96% QoQ to Rs 24.07 cr, helped by a 4.04 percentage-point decline in the tax rate.
- Other income accounted for 20.33% of pre-tax profit, so reported earnings were partly supported by non-operating income.
Price around the results
Revenue growth did not fully flow into operating profit
Ratnaveer's consolidated revenue expanded +23.08% QoQ, while operating profit grew +13.52%, showing weaker conversion of incremental sales into operating earnings. Net profit still rose +31.96% to Rs 24.07 cr as the lower tax rate helped offset the slower operating-profit growth.
Faster cost growth narrowed the operating margin
Expenses grew +24.16%, outpacing revenue growth of +23.08%, so operating margin narrowed 0.80 percentage points. Interest expense also increased +15.92%, adding pressure below operating profit. Other income contributed 20.33% of pre-tax profit, while the tax rate fell 4.04 percentage points to 12.59%; both supported the net-profit increase.
Margin has declined for three consecutive quarters
Operating margin fell from 11.38% in Q4FY26 to 10.23% in Q1FY27 and 9.43% in Q2FY27. Among 75 Industrials peers that reported the quarter, Ratnaveer's margin was 3.00 percentage points below the sector median of 12.43%.
Results were filed after market close
The company filed its consolidated results after market close on 30 Oct 2026. A post-result market reaction is not yet available to assess.
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 | ₹387 cr | ₹315 cr | +23.08% |
| Other income | ₹6 cr | ₹4 cr | +47.76% |
| Expenses | ₹351 cr | ₹282 cr | +24.16% |
| Operating profit | ₹37 cr | ₹32 cr | +13.52% |
| Operating margin (%) | 9.43% | 10.23% | — |
| Interest | ₹8 cr | ₹7 cr | +15.92% |
| Depreciation | ₹7 cr | ₹7 cr | -7.72% |
| Profit before tax | ₹28 cr | ₹22 cr | +25.87% |
| Tax | ₹3 cr | ₹4 cr | -4.67% |
| Net profit | ₹24 cr | ₹18 cr | +31.96% |
| EPS (₹) | ₹3.24 | ₹2.61 | +24.14% |
Operating margin of 9.43% compares with a Industrials sector median of 12.43% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.43% after its third consecutive quarterly decline.
- Whether expense growth moves below the +23.08% revenue growth rate.
- Whether other income's contribution to pre-tax profit falls from 20.33%.